CAPE Economics Unit 2 · 2014 · Paper 2 · Question 6(a)(i)
Distinguish between 'nominal exchange rate' and 'real exchange rate'.
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- 6(a)(ii)Assume that the nominal exchange rate between Trinidad (TT) and Barbados (BBD) currency is TT
3 equivalent to BBD1 and Barbados is the domestic country.…[2 marks] - 6(a)(iii)a)State the effect on the price of Jamaican goods relative to foreign goods.[1 mark]
- 6(a)(iii)b)State the effect on Jamaican imports.[1 mark]
- 6(a)(iii)c)State the effect on Jamaican exports.[1 mark]
- 6(b)Use the diagram below to explain the effect of an increase in demand for imported cars in Trinidad and Tobago on the demand for foreign exchange and the price…[4 marks]
- 6(c)Discuss TWO advantages and ONE disadvantage of globalization on developing countries.[12 marks]
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