Economics > A Level Question Paper > AQA A-level ECONOMICS Paper 2 National and International Economy 2022 QP (All)

AQA A-level ECONOMICS Paper 2 National and International Economy 2022 QP

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AQA A-level ECONOMICS Paper 2 National and International Economy 2022 QP  A-level ECONOMICS Paper 2 National and International Economy Time allowed: 2 hours Materials For this paper y... ou must have: • an AQA 12-page answer book • a calculator. Instructions • Use black ink or black ball-point pen. Pencil should only be used for drawing. • Write the information required on the front cover of your answer book. The Paper Reference is 7136/2. • In Section A, answer EITHER Context 1 OR Context 2. • In Section B, answer ONE essay. Information • The marks for questions are shown in brackets. • The maximum mark for this paper is 80. • There are 40 marks for Section A and 40 marks for Section B. Advice • You are advised to spend 1 hour on Section A and 1 hour on Section B. Section A Answer EITHER Context 1 OR Context 2. EITHER Context 1 Total for this context: 40 marks Investment in Africa Study Extracts A, B and C and then answer all parts of Context 1 which follow. Extract A Figure 1: Real GDP (US$ bn), selected African nations, 2015–2018 Figure 2: Foreign direct investment (FDI) net inflows (US$ bn), selected African nations, 2015–2018 Source: World Bank, 2020 Source: World Bank, 2020 Extract B: Foreign direct investment in Africa In 2018, foreign direct investment (FDI) in Africa rose to $46 billion, an 11% increase on the previous year. Morocco and Kenya saw some of the biggest rises in FDI, although many nations in Sub-Saharan and Central Africa experienced falls. Nations with high and stable growth seem better able to attract FDI inflows. It was expected that increased rates of economic growth in Africa, along with progress towards 5 the African Continental Free Trade Area (AfCFTA) agreement and key improvements in infrastructure, would boost FDI. Multinational corporations (MNCs) from developing countries have been expanding their activities in Africa but investors from developed countries remain key. French companies are currently the largest investors in Africa, followed by the Netherlands, the United States and the UK. Africa is a key producer of commodities and with 10 higher demand and rising commodity prices, FDI inflows are expected to increase even further. The growing number of special economic zones (SEZs) are also likely to help Africa attract more FDI. SEZs are areas with relaxed trade rules, little regulation and little or no tax on firms that invest in the zone. This makes locating in a SEZ very appealing to foreign firms. The creation of these zones has helped to promote development in several Asian economies and 15 many African nations hope to make their economies more business-friendly. There are an estimated 237 SEZs in the African continent already. FDI can have many benefits. It should create employment, boost long-run economic growth and increase exports. SEZs and improving competitiveness should contribute to the achievement of key macroeconomic objectiv [Show More]

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