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Economics, Accounting & Business: Post your doubts here!

Xenon

Xenon

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shahz_h said:
The link is this one. And it iz paper2
http://xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_w08_qp_2.pdf
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4 (b) Discuss whether the formation of regional trading groups, such as ASEAN and NAFTA, is desirable.

the question is talking about Trade blocs... trading blocs are formed between two or more countries/ regions with preferential trade agreements... a common thing about trade blocs is that it removes barriers of trade within the member countries.. there are few types of trade blocs which includes free trade areas, custom unions, economic union... the adv and disadv of trade blocs are more or less the same as the pros and cons of free trade.. in fact trade blocs leads to free trade among the member countries...
I suggest you check out Trade Bloc from books along with the types of it... two further things you should check are Trade Creation and Trade Diversification... these are the main things you'll need to know about this topic
 
Zephyro

Zephyro

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Aneeqdurrani08 said:
No, I am talking about Complete syllabus AS+A2.
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Very possible if your up to it. I speak from personal experience...my class was quite bad in terms of teaching and learning which led me to get a D in AS eco may/june 2011 session. After getting my results in august i prepared alone at home for the next 2 months and gave AS+A Level eco in the oct/nov session. Got an A*. Just dont stress yourself out and study according to your own timings..I use to study eco 3 hres a day and business 3 hres for everyday a month before the exams.
 
Zephyro

Zephyro

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shahz_h said:
The link is this one. And it iz paper2
http://xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_w08_qp_2.pdf
Click to expand...
The main topic here has to do with Trade diversion and Trade creation. You may talk about international trade in general as an introduction. As you might be aware there are different types of trade blocs such as economic unions,free trade areas etc. Depending on the situation it may or may not be an advantage for a country to be part of a trade block. Apart from the pros and cons of trade diversion in general the examiner will expect you to consider hard questions such as - Will the country benifit from the increase in trade but have any drawbacks from having to accept a common external tarrif ?.
As the question mentions ASEAN and NAFTA it would help your answer if you have any knowledge of these groups ( are the members better off inside it rather than outside ?...Please remember this is all highly debatable and you should make it clear that this is only your opinion..perhaps as the conclusion of the answer).

Also, try to be as objective as you can. In the real world it isnt as simple as considering trade diversion and trade creation. Politics, future trade agreements and also the fact that countrys inside the union may be major trade partners who will cease to trade with your country if it remains outside due to tariff problems/applying pressure.
 
Aneeqdurrani08

Aneeqdurrani08

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Zephyro said:
Very possible if your up to it. I speak from personal experience...my class was quite bad in terms of teaching and learning which led me to get a D in AS eco may/june 2011 session. After getting my results in august i prepared alone at home for the next 2 months and gave AS+A Level eco in the oct/nov session. Got an A*. Just dont stress yourself out and study according to your own timings..I use to study eco 3 hres a day and business 3 hres for everyday a month before the exams.
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Thank you very much! That was really encouraging! :)
 
shahz_h

shahz_h

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Bus. Std. Q: List the factors that could lead to an overall decline in the size of a market.
 
student92

student92

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decrease in demand dur to various factors such as Introduction of for efficient technologically advance substitute products
increase in competition, causing suppliers to exit teh market
change in economic conditions, such as recession would decrease the demand for income elastic goods with a positive value
 
Paradoxical

Paradoxical

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Hay guys,

I just wanted to know whether we can still use the 1st edition of the CIE Business Studies book, or would it be best to buy the new edition?
 
A

Atif Jalal

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Can someone PLEASE upload the Business Studies/ Economics October/November 2011 Question Papers and Markschemes? Need it real fast.
XPFMember said:
Hi everyone, assalamoalaikum!! :)

To get things organized in a better way, I am making this thread. As othewise, some queries remain unanswered!

So post your AS/A2 Accounts, Business or Economics doubts in this thread. InshaAllah other people here will be there to help you around. :D ;)

NOTE: If any doubts in the pastpapers, please post the link!

Thanks!
Jazak Allah Khair!
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Xenon

Xenon

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shahz_h said:
Eco doubt: http://www.xtremepapers.com/CIE/International A And AS Level/9708 - Economics/9708_s06_qp_1.pdf
Questions :20,22,27 and 30. I am not able to understand. I will b very thankful if some1 explains me.:)
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20 The supply of an imported good is shown by curve S. What will be the new supply curve if an ad valorem (percentage) tariff is imposed on the good?
Ad valorem is one of the two types of indirect tax (the other one being Specific tax). Ad valorem is a percentage tax, e.g. VAT. Now since this is a percentage tax the tax amount rises with the price of the product. Hence the tax will cause a NON-PARALLEL shift of the supply curve to the left. Thus answer is A

22 What will improve Cuba’s current account balance immediately?
lets consider the four options one by one: A will definitely worsen the current a/c since the purchase will be recorded as import in Cuba's current a/c
B and C can be recorded under the Financial a/c of BOP. The financial a/c is concerned with investments made by the Cuban's in a foreign country and the investments made by non-residents in Cuba. Note that the income generated from these investments will be recorded in the Current a/c.
this leaves option D which is, in fact, the correct answer. Now this talks about the flow of remittance in Cuba and it is recorded under current a/c (under Income section since the Income category covers employee's earning arising from employment aboard and investment income)

27 Increased international competition leads to a worsening in a country’s current account balance. In the absence of any offsetting factors, how is this likely to affect domestic inflation and the exchange rate?
okay, this is bit confusing more me as well but I think the answer is D (decrease in inflation and depreciation) is derived this way, you see an due to an increase in international competition, producers might be forced to reduce their costs so that they can obtain a price advantage in global market... the fall in cost and price can cause the inflation to reduce
now a worsening of the current a/c implies that the demand of export might have fallen/ demand of imports might have increased and thereby a depreciation of exchange will take place (note that a depreciation can again lead to increase in inflation rate but since the question states that offsetting factors are to be ignored, we'll opt out B)

30 In an attempt to correct a balance of trade deficit the government of Indonesia has decided to employ expenditure-dampening methods. Which policy would best fit this description?
It'll help you if you know about the expenditure switching and expenditure dampening policies. These are two policies to improve the position of balance of payments. Now expenditure-dampening policies are designed to reduce the demand of imports by reducing aggregate demand of an economy. Hence it mostly involves contractionary fiscal/ monetary policies. If you go through the options, you'll find B is one such a contractionary policy.
Note that the other options are expenditure switching policies (policies of devaluation and import controls fall under this)
 
Aneeqdurrani08

Aneeqdurrani08

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Zephyro said:
Yeah, no problem. Post here if you have any doubts..will try to help you during your preparations.
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I have completed my A2 micro and almost going to finish macro too. My position at the moment is that i cannot solve data responses and essays very well and i am so worried about it! Do you think i should start practicing questions as i cover my syllabus or 2 months before exams are enough for practice?
 
Zephyro

Zephyro

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Aneeqdurrani08 said:
I have completed my A2 micro and almost going to finish macro too. My position at the moment is that i cannot solve data responses and essays very well and i am so worried about it! Do you think i should start practicing questions as i cover my syllabus or 2 months before exams are enough for practice?
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I would suggest not writing sample essays unless you have someone with good experience to mark it for you. While doing the papers go through the examiners report ( MS wont really have anything much for the essay topics ). Should give you some idea of what you need to write. 2 Months is more then enough but I assume you will have other subjects and it all depends on time management.
 
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