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Balance of payments

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Question 4

Extract 1 – Integration into Global Trade and Macroeconomic Balance

While some large emerging economies focus on expanding domestic consumption, many medium-sized developed and rapidly industrialising economies are highly dependent on external trade to drive economic growth. A high degree of trade openness can accelerate wealth creation and technological transfer, but it also increases susceptibility to global recessions and supply-chain shocks. Fig. 1.1 records real GDP and population figures across five selected economies over a recent eleven-year period.

Fig. 1.1 – GDP and Population of selected countries (2012–23)

CountryGDP (USD, billions at 2018 prices) 2012GDP (USD, billions at 2018 prices) 2023Population (millions) 2012Population (millions) 2023
Canada1800210034.738.9
Germany3900450080.484.1
Brazil19002200200.1216.4
Australia1400170022.726.5
Vietnam22044089.898.2

The economic impact of export-oriented policies varies widely. Strong integration into regional manufacturing hubs is characteristic of nations like Germany, while nations with massive domestic markets, such as Brazil, rely less intensely on international trade relative to their total output. Fig. 1.2 details the real export values for these economies in 2023.

Fig. 1.2 – Exports of Goods & Services of selected countries in 2023

CountryExports (USD, billions at 2018 prices)
Canada1050
Germany2200
Brazil440
Australia765
Vietnam198

Explain, using the data in Fig. 1.1 and Fig. 1.2, in which country exports accounted for the greatest proportion of national output (GDP) in 2023.

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Markscheme

Balance of payments Questions

  1. A Level
  2. /Economics
  3. /Balance of payments

38 exam-style questions on OCR A Level Economics Balance of payments. Each one has a worked solution and a mark scheme showing where the marks go.

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