Edexcel A-Level Economics Theme 4 Flashcards

Revise Theme 4 with interactive flashcards written to the Edexcel A (9EC0) specification — globalisation and trade, poverty and inequality, emerging and developing economies, the financial sector and the role of the state in the macroeconomy. Flip each card to check yourself, rate how well you knew it, and the deck brings back the cards you found hard. Every card links to the revision notes page that teaches it, and the deck is growing.

84 cards · 21 topics · Edexcel A Theme 4: A Global Perspective

Sample cards

Define globalisation — and what characterises it?

Globalisation: the increasing integration and interdependence of the world's economies.

Its characteristics: increased free trade in goods and services across borders; increased foreign direct investment (FDI) and capital flows; increased foreign ownership of firms through multinational and transnational corporations; and increased freedom of movement of labour between countries.

Country A can make 40m cars or 80m tonnes of wheat; Country B can make 10m cars or 60m tonnes of wheat. Calculate each opportunity cost — who should specialise in what?

Opportunity cost of a car:

  • A gives up 80 ÷ 40 = 2 tonnes.
  • B gives up 60 ÷ 10 = 6 tonnes.

Opportunity cost of a tonne of wheat:

  • A gives up 0.5 cars.
  • B gives up 10 ÷ 60 ≈ 0.17 cars.

A has the lower opportunity cost in cars, B in wheat — so A specialises in cars and B in wheat, even though A has an absolute advantage in both.

Show comparative advantage using two countries' PPFs.

Two straight-line PPFs for computer chips and T-shirts on shared axes: Germany's runs from 200 million T-shirts to 20 million chips and lies wholly outside Vietnam's, which runs from 150 million T-shirts to 10 million chips

Germany's PPF runs from 200mn T-shirts to 20mn chips; Vietnam's from 150mn T-shirts to 10mn chips. Germany has an absolute advantage in both goods.

Opportunity costs:

  • A chip costs Germany 10 T-shirts but Vietnam 15.
  • A T-shirt costs Vietnam 0.07 chips but Germany 0.1.

Each specialises where its opportunity cost is lower: Germany in chips, Vietnam in T-shirts. Trading 5mn chips for 60mn T-shirts leaves Germany with 15mn chips and 60mn T-shirts (50mn alone) and Vietnam with 5mn chips and 90mn T-shirts (75mn alone), so both consume beyond their own PPFs.

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What these flashcards cover

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