(a) Explain how an increase in the quantity and quality of a nation’s factors of production can promote economic development. • definition of factors of production • definition of economic development Candidates may respond to this in terms of measures of development such as HDI etc. • explanation of an increase in the quantity of productive factors • the impact of an increase in the quantity of resources on productive capacity, economic growth and, possibly economic development • explanation of an increase in the quality of productive factors • the impact of specific examples of an increase in the quality of factor inputs, e.g. the use of improved health and education programmes, on economic development • reward the use of appropriate diagrams • reward the use of appropriate growth models
(b) Evaluate the impact of globalization on the economic development of developing countries. A definition of globalisation
Answers may include: • features of developing countries • evaluate the impact of (in terms of positives and negatives): –free trade –FDI by MNCs –liberalisation of capital markets –greater labour mobility –the transfer of knowledge and technology –income and wealth inequality –increased industrialisation and urbanisation -greater tourism -protection in developed countries
Crucial to this question is the need for candidate answers to have clear links to economic theory. This is a big subject and answers may vary.A good candidate is going to define globalisation and then go on to evaluate its impact in terms of how they have defined it.
Examiners should be aware that candidates may take a different approach, which if appropriate should be fully rewarded.
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