Welcome to the 48th edition of our Newsletter EdGenie's 📜 Sunday Scroll...
Every Sunday I send out actionable tips, tricks and real-world application insights from my 15 year experience coaching students to achieve As and A*s in their Economics A Levels via EdGenie.
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Don't Waste Your Summer! 🌞
EU takes aim at China’s Temu and Shein with proposed import duty
Infographic of the Week
Chart of the Week
Macroeconomic Data
Don't Waste Your Summer! 🌞
Hey Genies,
Last week I asked how your end-of-year exams or mocks went.
Some of you had good grades and some didn't achieve the grades you wanted.
Let's change that now.
Although, they shouldn't really play a humungous role in your predicted grades because it's 5-6 months before you apply for universities/apprenticeships.
...In a lot of scenarios... it does.
So by September/October, you need to provide what I like to call:
'That undeniable stack of proof' to your teachers, that you are worthy of achieving an A or A* in your final exams...
I actually got this from my hero Alex Hormozi!
Why do I say this?
Because if you have proof that you are improving, well guess what – they will be more inclined to give you a higher predicted grade.
So your next question should be:
"Well, how do I do that now?
I'm going into my summer holidays and don't have school, and the next time I see my teachers is in September where we will be tested."
I'm afraid you have to work throughout the summer.
Small, consistent efforts every other day or 2-3 times a week. Look at your mainframe: What went wrong in Year 12? What did I do well? Review where you were getting your guidance from and change it if you feel like you didn't do the work. 📝
Go over Year 12 Economics topics in detail – especially the ones you don't understand. Maybe the harder areas like market failure or macro policies – run through them in depth. 📚
Do question practice on them and get feedforward (constructive feedback). This is crucial for improvement. 🧠 This is the most important one.
Keep abreast of real-world application: We've just partnered with FT and The Economist (you get this free if you enrol with EdGenie). Ensure you are applying the news to the theory that you've learnt (The articles you read will come up in your exam) 🌐
Something really simple: Engage in discussions about current economic trends. The elections were this week – think about what this might mean for the economy and its different economic agents. 🗣️
If you just do these 5 things a a couple times a week and you have the right guidance throughout - by the time September comes around, you will be a completely different student, proving to your teachers, you are worthy of that top grade
🇪🇺 EU Plans to Impose Customs Duties: The European Commission aims to remove the €150 threshold for duty-free goods to curb substandard imports from Chinese online retailers like Temu and Shein. 📦 Rising Ecommerce Imports: Over 2.3 billion items below the duty-free threshold were imported into the EU last year, with ecommerce imports doubling year on year. 🇨🇳 China's Subsidised Postage: China benefits from subsidised postage, making it cost-effective to send cheap goods to the EU by air. 💻 Online Retailers Targeted: The measures will affect any online retailer shipping directly to the EU from outside the bloc. US-based Amazon typically uses European sellers. 💰 VAT Registration: There is a proposal to make large platforms register for VAT payments online, irrespective of the value of the goods. 🔧 Proposals for New Commission: The options will be presented in preparation for the new commission taking office later this year.
📈 Increase in Dangerous Products: Reports of dangerous products in the EU jumped by over 50% from 2022 to 2023, with toys, cosmetics, electrical appliances, and clothes being the most problematic.
🧸 Toy Safety Concerns: The EU toy industry accused Chinese retailers of shipping dangerous toys. A study found 18 out of 19 toys from Temu posed safety risks.
🔍 Enhanced Monitoring: Temu stated it removed the unsafe toys from its EU website and has strengthened product monitoring.
⚖️ Fair Competition: EuroCommerce calls for a level playing field in online retail for all players targeting EU consumers.
🛠️ Legislative Compliance: Temu, AliExpress, and Shein expressed support for fair policy adjustments and compliance with EU market regulations.
A Level Economics Questions:
Q: What economic rationale is behind the European Commission's decision to scrap the €150 duty-free threshold for imports from Chinese online retailers?
A: The economic rationale behind scrapping the €150 duty-free threshold is to protect the EU market from an influx of substandard goods, ensure fair competition, and generate additional revenue from customs duties. By removing this threshold, the EU aims to level the playing field for local businesses that must comply with stringent regulations and incur higher costs. It also addresses safety concerns associated with low-cost imports that may not meet EU standards.
Q: How might the proposed removal of the duty-free threshold impact consumer behaviour in the EU?
A: The removal of the duty-free threshold could lead to higher prices for imported goods from outside the EU, as customs duties would now apply to previously exempt items. This price increase might discourage consumers from purchasing cheap imports, prompting them to seek alternatives within the EU. Consequently, consumers may shift their spending towards local products, potentially boosting demand for EU-based retailers and fostering domestic economic growth.
Q:In what ways do subsidised postage costs benefit Chinese retailers and affect the EU market?
A: Subsidised postage costs allow Chinese retailers to offer low shipping rates, making it economically viable to send inexpensive goods to the EU. This cost advantage enables them to sell products at lower prices, appealing to price-sensitive EU consumers. However, it also creates unfair competition for EU-based retailers who face higher shipping and operational costs, potentially leading to market distortions and challenging the survival of local businesses.
Q: What role do VAT payments play in the European Commission's strategy to regulate online retail platforms, and how might this affect large platforms?
A: Requiring large online retail platforms to register for VAT payments, regardless of the value of the goods, is part of the European Commission's strategy to ensure tax fairness and compliance. This measure aims to close tax loopholes and ensure that all retailers contribute to the EU's tax base. For large platforms, this could mean additional administrative responsibilities and potential cost increases, which might be passed on to consumers. However, it also promotes a level playing field by ensuring all market participants adhere to the same tax obligations.
Possible A Level Economics 25 Marker Question
To what extent do subsidised postage costs for Chinese retailers distort market competition within the EU?
Infographic of the Week
Global Automaker Sales Analysis for 2023
In 2023, automaker sales by region highlighted distinct market preferences and regional strengths among major car brands. Chevrolet led North American sales, with 66% of its total sales originating there, followed by a significant presence in Latin America at 22%. Ford, however, found its second-largest market in Europe, which accounted for 26% of its sales. German automakers like BMW and Volkswagen showed a strong focus on China, where both brands sold a larger portion of their cars than in Europe. BMW, notably successful in China, sold over 826,000 vehicles and announced a $2.76 billion investment in its Shenyang plant to further strengthen its market position. This data underscores the importance of regional strategies for automakers, as they navigate varying market dynamics across the globe.
Chart of the Week
Rapid Expansion of AI Adoption in Business Functions
Generative AI has significantly expanded its presence in business functions over the past few years. According to a study by McKinsey & Company, the proportion of organisations utilising AI in at least one business function increased from 56% in 2021 to 72% in early 2024. Furthermore, those employing AI across five or more functions rose from 8% to 15% in the same period. The most substantial growth has been observed in professional services sectors, including HR, training, and R&D, indicating a broadening acceptance and integration of AI technologies in various business operations.
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
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