A rapid expansion of railway construction in an overseas economy increases its purchases of machinery made in the UK. Table 1 shows changes for a group of UK machinery producers.
| Measure | Before the expansion | During the expansion |
|---|---|---|
| Quarterly export orders | £420 million | £690 million |
| Quarterly machinery output | 7,500 units | 10,500 units |
| Average production cost | £62,000 per unit | £55,000 per unit |
| Number of employees | 9,800 | 11,300 |
| Export sales sent to this overseas market | 58% | 74% |
Using Table 1, analyse the consequences for UK machinery producers and their workers of supplying an expanding overseas railway industry.
118 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.