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Home > Wednesday Wisdoms: Newsletter > Blueprint to your success in A-Level Economics

Welcome to the 28th edition of Wednesday Wisdoms by EdGenie!

Every Wednesday I send out actionable tips, tricks and real-world application insights from my 13-year experience coaching students to achieve As and A* in their Economics and Business A Levels.

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Blueprint to your success in A-Level Economics

Hi Genies
With over a thousand students coached to As and A*s, I've distilled the essence of effective learning and revision into a proven strategy.
This isn't just advice; it's the blueprint to your success in A-Level Economics.

Why This Strategy Works

  • It mirrors the cognitive process of learning, understanding, applying, and then mastering through repetition and critical thinking.
  • It ensures that by the time you're facing exam-style questions, you're not just recalling information; you're deploying a deep, nuanced understanding of economics.
  • It adapts to your learning style, allowing for flexibility within a structured framework, ensuring that every student can find their rhythm and pace.

Here’s your ultimate strategy to not just learn but excel:
📊 1. Mastering Content: A Dual Approach

  • Visual Learning: Dive into videos on EdGenie that bring economic theories to life. Seeing concepts in action solidifies understanding beyond what traditional texts offer.
  • Written Material: Complement visual learning with comprehensive summary sheets. Taking notes as you learn creates a rich tapestry of understanding.


🔍 2. Reinforce Understanding: Multiple Choice Questions

  • After grounding yourself in the fundamentals, it's time to test your knowledge. Multiple-choice questions, with their quick feedback loop, offer the perfect opportunity to solidify your understanding and identify areas needing further review.


📝 3. Enhance Application: Short-form Questions

  • Apply your knowledge through short-form questions, ranging from 2 to 12 marks. This practice refines your ability to apply economic concepts to specific scenario based questions where you start to build chains of reasoning and evaluation.


🖋 4. Deep Dive: Long-form Questions

  • The epitome of economic understanding is showcased through your ability to tackle long-form questions. Techniques like Blurting, Pre-planning, and Essay Plans not only prepare you for 15 and 25 markers but also teach you to construct coherent, comprehensive arguments. This phase encourages you to weave together knowledge, application, critical analysis and evaluation into a seamless narrative.


✍️ 5. The Pinnacle of Preparation: Pure Exam Practice

  • Simulate the exam environment. This isn’t just about answering questions; it’s about mastering timing, honing essay structures, and delivering compelling arguments.

As your mentor in navigating the complexities of A-Level Economics, I encourage you to adopt this multifaceted learning approach. It’s more than a path to achieving top grades; it’s about evolving into a well-rounded economist with a deep understanding of how our world operates economically.

Your journey to mastery begins now. Approach it with determination and passion. Remember, achieving excellence in economics is an ongoing journey of discovery and understanding.

Move forward with confidence,

Best,

Emre


​China to export deflation to the world as economy stumbles

Summary

🌏 Impact on Emerging Markets: China's producer price index fell by 2.5% year-on-year, with consumer prices dropping 0.8% annually—the fastest in 15 years. This trend could notably affect emerging markets tied closely to Chinese trade, potentially prompting these markets to lower interest rates.

🔄 Trade Dynamics Shift: Chinese deflation may lead to sustained demand for commodities from countries like those in Latin America and Africa, potentially balancing deflation in manufactured goods with a mild inflation in commodities.

📊 Divergent Economic Views:
Some analysts doubt China's deflation will significantly impact global prices, noting the relatively small share of Chinese imports in developed economies like the US. Conversely, others believe the impact on prices is understated due to possible undercounting of US imports from China.

🏭 Competitive Pressures Intensify:
Cheaper Chinese exports are raising concerns about unfair competition in Western manufacturing. China's move into high-end manufacturing poses a particular threat to developed markets.

🚗 Price Wars and Market Penetration:
Chinese carmaker BYD has slashed prices in Germany, signaling aggressive market penetration and intensifying price wars, further challenging established manufacturers.

🔍 Policy Dilemmas:
Western economies face a difficult choice between reducing reliance on Chinese imports and succumbing to the attractive pricing of Chinese goods, a dilemma not shared by many other countries that benefit from China's affordable exports.

A Level Economics Questions:

Q:Evaluate how falling prices of Chinese exports might influence global inflation rates.
A:Falling prices of Chinese exports can exert downward pressure on global inflation rates as cheaper goods from the world's largest exporter become available internationally. This deflationary pressure is particularly influential in emerging markets with close trade ties to China. However, the overall impact on global inflation will depend on the extent to which these cheaper exports are consumed worldwide.

Q: Discuss the possible reasons for China's 'exporting deflation' phenomenon and its potential impact on global markets.
A: China's 'exporting deflation' is likely due to overcapacity in its slowing economy and weak domestic demand. This compels Chinese manufacturers to reduce export prices, thereby sending deflationary waves abroad. The impact could be varied, potentially benefiting consumers with lower prices while challenging producers who face stiffer competition and price pressures.

Q: How might falling Chinese export prices affect monetary policy in emerging markets?
A: If Chinese export prices fall, emerging markets may experience reduced inflationary pressures, allowing their central banks to consider interest rate cuts. These cuts could stimulate economic growth by reducing the cost of borrowing, encouraging investment and consumption.

Q: To what extent do you agree with the assertion that deflation in Chinese manufactured goods could still permit some inflation in commodities?
A: The assertion is plausible as deflation in Chinese manufactured goods could lead to cost savings for consumers and businesses, potentially increasing disposable income and investment capacity. This could, in turn, sustain or even increase demand for commodities, leading to inflation in those sectors despite broader deflationary trends.

Possible A Level Economics 25 Marker Question

To what extent might China's export deflation affect the economic growth prospects of emerging markets.

Infographic of the Week

Navigating Economic Currents: Global GDP Growth Projections for 2024

The global economic forecast for 2024 paints a picture of cautious optimism, with the IMF projecting a modest 3.1% rise in real GDP growth, signaling resilience amidst a landscape peppered with financial uncertainties. As countries grapple with varied challenges like potential inflationary rebounds, increasing debt burdens, and diminishing consumer savings, the U.S. stands on the brink of potential rate cuts, though the Federal Reserve maintains a vigilant stance against premature easing. This global outlook underscores a tapestry of regional narratives, where economic prospects diverge, reflecting the unique interplay of domestic and international factors influencing each nation's growth trajectory in a year that hints at recovery but demands strategic navigation.

Chart of the Week

The Looming Educational Crisis: A Snapshot of Global Teacher Shortages

By 2030, an educational crisis looms as UNESCO reports a stark global teacher shortage, with Subsaharan Africa at the forefront, requiring hires equivalent to 178% of its current teacher stock. This region, alongside Southern Asia, faces a unique challenge due to their population growth, demanding an unprecedented number of new teaching roles that outstrip existing numbers. Contrastingly, Europe, North America, and Southeast Asia grapple primarily with replacing retirees, accounting for 38% of their existing workforce. Eastern Asia appears least affected, anticipating new hires at just 21% of current figures. To meet these urgent needs, particularly in the developing world, enhancements in the teaching profession's appeal are crucial, although Subsaharan Africa may still fall short of its 2030 targets, underscoring the need for immediate and innovative educational strategies.


Macroeconomic Data


Whenever you're ready there is one way I can help you.

If you or your child are looking to Boost your A level Economics Grades in under 30 days, I'd recommend starting with an all-in-one support network where you get 24/7 access to a SuperTutor:

Join EdGenie 🧞‍♂️: Transform your A-Level Economics essays and exam marks (genuinely) with our comprehensive on-demand learning platform. This carefully curated course blends engaging content with effective exam techniques, the same ones that have empowered over 1,000 of my students to achieve an A or A* over the last 13 years. 
A huge thanks for hopping on board EdGenie's Wednesday Wisdoms newsletter! 
I'm Emre, and I've got a big goal - to make A* education accessible to all A-level students.
And it Starts With You!

Emre Aksahin
Chief Learning Officer at Edgenie