Edexcel Unit 4 – The Global Economy

These topics are examined in the IAL Unit 4 for Edexcel Economics.

You can find notes for Unit 4 here:

Causes and Effects of Globalisation

a) Causes of globalisation
b) Effects of globalisation

Trade and the World Economy

a) Specialisation and comparative advantage
b) Patterns of trade
c) Terms of trade
d) Trade liberalisation
e) Restrictions on free trade

Balance of Payments and Exchange Rates

a) Balance of payments
b) Exchange rates

Poverty and Inequality

a) Absolute and relative poverty
b) Inequality

The Role of the State in the Macroeconomy

a) Public expenditure
b) Taxation
c) Public sector borrowing and public sector debt
d) Macroeconomic policies

Measures to Promote Growth and Development

Limits to growth and development application points
a) Market orientated strategies
b) Government-led strategies
c) Other strategies
d) Role of foreign governments, international institutions and non-governmental organisations (NGOs)
e) Constraints on growth and development