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Economics 7136/2 June 2022

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The paper examines macroeconomic issues and global economic dynamics. Section A explores foreign direct investment (FDI) in Africa, its benefits, challenges, and the role of policies such as special economic zones. Key themes include infrastructure development, trade agreements, and FDI′s impact on growth and employment. Inflation is addressed, analyzing its causes, effects, and policy responses in countries like Argentina, highlighting monetary and fiscal strategies. Section B discusses balance of trade deficits, output gaps, and international trade. Topics include expenditure-switching policies, exchange rate systems, supply-side interventions, and the economic benefits and risks of globalization. Analytical and evaluative skills are emphasized.
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