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Highly Possible Essay for Economics tomorrow.

*The problems to the environment and measures taken internationally to address them.*

INTRODUCTION

MAIN PART
1. *BIODIVERSITY LOSS.*
-Biodiversity is the variety of plants and animals in a particular area is these are usually endangered by human consumption.
-If species such as fauna and flora become extinct (die out completely), this cannot be reversed.
-Modern techniques such as gene transplants can limit the loss of species by using DNA to recreate some needed life in laboratories.
-THE CONVENTION OF INTERNATIONAL TRADE IN ENDANGERED SPECIES (CITES) sets many policies to deal with species loss.
-Monitoring and regulation of trade in endangered species is carried out using the permits and quotas that are a requirement to trade plants and animals internationally.

2. CHEMICAL WASTE.
-Chemical waste is toxic (It has a negative effect on living beings and can cause infertility or death).
-Chemical waste need to be carefully managed to ensure it does not leak into the ground water.
-The STOCKHOLM PROTOCOL is a United Nations agreement to limit chemical waste by banning the twelve of deadliest manufactured chemicals.
-The Rotterdam convention protects countries that lack adequate infrastructure to monitor the import and export of dangerous chemicals.

3.HAZARDOUS WASTE. -Hazardous waste is highly toxic and it includes toxic metal waste such as lead.
-It has a slow decomposition rate (it stays poisonous for a very long time).
-The most dangerous harzadous waste is radioactive waste from nuclear power.
-The BASEL CONVENTION is an international agreement to manage nuclear waste.

4. CLIMATE CHANGE.
-Climate change is the change in weather patterns which them impact the living organisms in the environment such as plants and animals negatively.
-Global warming primarily causes climate change as the heat is trapped into the atmosphere.
-Climate change can be causes by greenhouse gases from production emissions such as carbon dioxide and carbon monoxide that reach the ozone layer and makes it crack.
-Climate change can be reversed through widespread international cooperation, e.g. sharing weather information and weather patterns, agreeing on limiting pollution, and banning chemical products such as greenhouse gases that damage the ozone layer.
-The KYOTO PROTOCOL of 1997 is an international agreement to limit the production of greenhouse gases, because voluntary reductions of carbon dioxide levels did not succeed.
-Paris agreement also state that both developed and developing countries should commit to reducing the greenhouse gases.

5. LOSS OF INDIGENOUS KNOWLEDGE.
-Indigenous people have a lot of knowledge about the natural environment, which they use to make a living and this need to be protected.
-Indigenous people traditionally used organic methods and natural processes to survive and this has been threatened by urbanisation and modernisation of communities.
-As indigenous people lose their habitats this knowledge is disappearing and is being lost to the world forever and it would prove costly as we would not be able to solve new problems such as Covid19 effectively.
-LOCAL CAPACITY-BUILDING is very important for the environmental sustainability of indigenous people (finding a way for them to earn a living in their traditional environment).
-UNESCO encourages countries to preserve their culture, history and education through the heritage sites.

ADDITIONAL PART
-

CONCLUSION
-It is important that all countries adhere to the commitments on the international measures and various environmental protocols as these will guarantee a better life for future generations.

We gave you the Essay. 🤝

Grade 12 highly Possible essay for Question 5 Economics Final exam 2024.
*Discuss in detail the reason(s) for public sector failure (link them to typical problems experienced through public sector provisioning)*
*INTRODUCTION*
- Public Sector Failure occurs when government intervention in the economy leads to an inefficient allocation of resources and leads to an overall decline in economic welfare.
*MAIN PART*
1. *Management Failure*
- Management failure is a shortfall of duty or performance in directing and controlling a government department, function or team.
- *The management failure links with lack accountability as the government officials have ignorance, usually because of lack of leadership, experience and training.*
- This leads to mismanagement which leads to serious failure of duty that leads to losses, errors, omissions and poor service delivery.
2. *Apathy*
- Apathy is when you lack dedication to do anything or just don't care about what's going on around you which is one of the characteristics of some government servants.
- Government officials show little or no interest in delivering an efficient service to the public, there is usually long ques in government offices as apathy affect behavior and ability to complete daily activities.
- Corruption and poor service delivery are some of the symptoms of apathy
- *Apathy links with parastatals as people employed by the state owned enterprises such as Eskom and post office seek to maximise their salaries even when the businesses are producing at a loss.*
3. *Lack of motivation*
- Workers *rarely receive incentives for successful service delivery*, but are only monitored on inputs and correctly following procedures and processes.
- This might lead to limited services, high cost, low quality work as workers feel that they are not valued by the employer.
- *Lack of motivation links with nationalisation because when businesses are nationalised the workers bonuses disappears and this leads to them working less which leads to inefficiency in the economy.*
4. *Bureaucracy*
- Bureaucrats tend to obey rules and regulations without judgement, bureaucrats are all about following the law.
- There is no emphasis on creating additional competencies and there is less freedom to act within a bureaucracy.
- Bureaucrats fosters a structure that doesn't create true productivity and thus lead to poor service delivery.
- *Bureaucracy links with inefficiency as the government officials provide less public goods and services than what they are capable of providing with the available resources because of too much red tape.*
5. *Structural weaknesses*
- Sometimes an economy’s problems are deeper and longer lasting usually as a result of *inefficient government policies.*
- Objectives are not met because they may work against each other.
- This might happen when government redistributes income and wealth too aggressively without proper projections.
- *Structural weakness links with pricing policy as it is usually difficult for the government to accommodate changing circumstances in terms of charging appropriate prices in the economy*.
6. *Special interest groups*
- Certain people or groups with powerful influence in the government usually try to further their own interests by means of *rent-seeking or lobbying*.
- These groups include private businesses and also the trade unions.
- Farmers tend to demand undeserved subsidies and organised labour tend to influence government to their own advantage (More salary) at the expense of service delivery)
- *Special interest groups can also link with privatisation because of the evidence we saw during Covid19 when businesses applied for relief subsidies and not share it fully with their workers which was an unnecessary misdirection of funds.*
7. *Politicians*
- To retain their power, politicians have to be re-elected or retain their political powers or positions.
- This means that they would have to endorse or promote policies or projects which are mostly unrealistic for as long as they get the votes in return.
- *Politicians is linked to inefficiency as service delivery is compromised by people who are always looking for power*.
*ADDITIONAL PART*
-
*CONCLUSION*
- The government should try to form policies such as private public partnerships as this will bring some motivation and ensure creativity and innovation which will improve service delivery.

Grade 12 Highly Possible essay for Paper 1 Final exam Question 5 2024. By The School Of Accounting & Economics
*Discuss in detail the main reasons for international trade.*
*INTRODUCTION*
- International trade is an exchange (Exports and imports) of goods and services between at least two different countries in an open economy.
*MAIN PART*
*Demand Reasons for 1International Trade:*
1. Size of population
- The number of people in the country can increase because of migration or when there is more births than deaths which increases the needs and wants of the population.
- The nation will require more food to feed the increased population and the only way out could be to import them from other countries as the local production might not be enough.
2. Change in income levels
- When per capita income of the country improves it means the disposable income each person in the country has increases.
- This will cause a change in demand for goods and services and some of these goods will then be imported as domestic markets struggle to meet the increased demand.
3. Change in the wealth of the population
- If the wealth of the population increase because of a discovery of certain minerals or other ways there will be a greater demand for goods.
- People have access to loans and can spend more on luxury goods, many of which are produced in other countries.
- Most developing countries acquire the luxury goods from more industrialised countries since they specialise in the production of such goods.
4. Preferences and taste
- Because of Globalisation population dynamics gets to change which leads to people in that country having a change in preferences and taste.
- The new consumption habits will lead to locals demanding more of ther new found cravings from the other countries that sell the goods. E.g. South Africa buying more of vanilla from Madagascar.
5. The difference in consumption patterns
- Countries consumption patterns differ because of their level of economic development and standard of living.
- Poorly developed countries usually have a high demand for basic goods and a less demand for luxury goods.
- Rich countries or most countries in the north would also buy more of expensive products on the international market.
*Supply Reasons for International Trade:*
1. Natural resources
- They are not evenly distributed across all countries of the world, some countries have gold and some oil.
- They countries gets involved in international trade in order to acquire the resources that are usually not available within their borders, they also avail the resources they have in abundance to other countries.
2. Climatic conditions
- Favourable conditions makes it possible for some countries to have an absolute advantage in the production of certain goods.
- Brazil is a biggest producer of coffee and South Africa produces a lot of citrus fruits.
- These countries will then be able to trade what they can never produce efficiently because of unfavourable weather conditions.
3. Labour resources
- Human resources differ in quality, quantity, cost and level of skills from country to country.
- Countries with highly skilled labour tend to produce a wide variety of quality goods and the countries with unskilled labour tend to import more goods.
- China has a highly skilled labour force and they export a lot of goods to other countries.
4. Technological resources
- Advantageous trade can occur between countries if the countries differ in their technological abilities to produce goods and services.
- This is also known as Ricardian model of trade, and it concludes that everyone benefits from trade as the two countries will receive the goods which they would never be able to make on their own because of the lack of the necessary technology to produce such goods.
5. Specialisation
- Specialisation leads to the existence of economies of scale in production which is sufficient to generate advantageous trade between two countries.
- Economies of scale refer to a production process in which production costs fall as the scale of production rises which means more goods are produced at a lower cost in certain countries.
- A country with an *absolute advantage* would then be able to produce more goods at a lower cost and sell them to other countries.
6. Capital
- Capital allows developed countries to enjoy an advantage over under-developed countries.
- Due to a lack of capital, some countries cannot produce all the goods they require themselves even if they have the resources and labour skills which lead them to getting such goods in other countries.
ADDITIONAL PART
-
CONCLUSION
- It is important that countries on the South like South Africa work on their industrial development as it will enable us to produce more goods and services in order to benefit from trade between the country.

Grade 12 Essay 2 of 6 for paper 1 question 5 Economics Final Examination 2024

*DISCUSS IN DETAIL THE NEW ECONOMIC PARADIGM*

INTRODUCTION
-According to the new economic paradigm it is possible to have a high economic growth and an increase in employment without being held back by supply limitations and inflation.

MAIN PART
THE DEMAND SIDE POLICY
- It refers to methods taken by the government in order to assist consumers to buy more goods and services.

1. *Fiscal Policy*
-The use of tax and government spending in order to influence the economy.

*Tax*
-The government can decrease tax which will leave the households with more disposable income to spend.
-The households will then spend more on goods and services which will lead to businesses producing more and an increase in economic growth.

*Government spending*
-The government can decide to spend more on providing the public goods and services in the economy.
-This lead to more injections and money circulating in the economy which increases economic growth as demand increases.

2. Monetary policy
-It is the use of interest rate and other instruments in order to influence money supply.

*Interest rate*
-The reserve bank will reduce the interest rate in order to encourage people to borrow more money from banks.
-When access to credit is more cheaper people will buy more goods and services which is an increase in demand.

*Cash reserve requirements*
-The reserve bank will decrease the percentage cash reserves it requires from commercial banks.
-The commercial banks will thus have more money to give out as loans which increases demand for goods and services by households.

*Open market transaction*
-The reserve bank will buy the securities such as shares from the commercial banks(e g ABSA)
-Money will flow to the commercial banks leaving them with more capacity to grant loans which increases demand in the economy.

*Moral persuasion*
-The reserve bank will encourage the banks to grant more loans to the people as it enable them to buy more.
-The reserve bank can also do various campaigns to encourage people to spend more in order to increase the demand for goods and services.

THE SUPPLY-SIDE POLICY
-Supply-side policies refer to any measures undertaken by the government to increase the level of aggregate supply of goods and services in the country in order to meet changes in demand. This can be done by;

1. *Reduction in production cost.*

*Infrastructure cost:*
- The government can implement measures to decrease production costs of businesses both directly and indirectly.
- The cost of transport can be reduced by improving the roads and decreasing the petrol price which helps in increasing production.
- The government can also work on the reduction of other infrastructure services such as communication in order to improve the market.
- Improving electricity or energy supply ensures that there is no disruption when the businesses are producing.

*Administrative costs:*
-The government can work on reducing too much inspections and paperwork as they add to costs of businesses.
-Deregulation should be applied in order to encourage other businesses to enter the market with less red tapes.

*Cash incentives:*
-This include subsidies for businesses to locate in areas where unemployment is high.
-Incentives like cash allowances and subsidies to encourage export promotion can also decrease costs.

2. *Improving the efficiency in inputs.*

*Tax rates:*
-Higher personal income tax rates are a disincentive to work and they should be reduced in order to encourage the people to work more and increase productivity.
-The government should work on reducing corporate income tax in order to encourage more investments by businesses.

*Capital consumption:*
-Replacing capital goods regularly creates opportunities for businesses to keep up with technological development.

*Human resource development*:
-Quality of the work force can be improved by improved health care, education, training schemes and mobility of labour.
-Healthy and competent labour force ensures more production of goods and services and increased economic growth.

*Free advisory service:*
-The government should provide special help or advice to SMME’s to help them to be competitive in the market.
-This can be an advice on effective ways to produce, better technology to use or even help with market research.

3. *Improving the efficiency in markets.*

*Deregulation:*
-Removal of laws and other forms of government controls that interfere in markets and make the markets free.

*Competition:*
-Encourage the establishment of new businesses and using institutions such as competition commission to reduce collusion and mergers.
-Invite foreign direct investments to encourage an inflow of money into our economy which helps in industrial development.

CONCLUSION
- When both the demand side and supply side policies are applied the natural rate of unemployment in the Phillips Curve decreases without an increase in inflation which improves the welfare of people in our country.

Dear Grade 12 Students,

We extend our sincerest wishes to each of you as you embark on your final examinations, commencing tomorrow. Your dedication and perseverance have led you to this pivotal moment.

May your hard work and preparation yield outstanding results. Stay focused, confident, and composed. Showcase your knowledge and skills with precision and clarity.

You have the potential to excel and make your families, teachers, and community proud. Seize this opportunity to shine!

We are back to assist each and everyone who needs our help feel free to send messages.

Best of luck and success in your exams

Possible Essay for grade 12 Economics final exam 1 of 6.

*Discuss in detail the markets within the four sector model*
INTRODUCTION
The *circular flow* is a model that shows how the economy works and the relationship between production, income and expenditure.
MAIN PART
*The markets within the four sector model*
1. *Product markets*
- These are markets for *consumer goods*, services and *capital goods*, it is a market where goods and services are traded.
- *Capital goods* market for trading of buildings and machinery which are the goods that are used to produce other goods by the businesses.
- *Consumer goods* market is for trading of *durable consumer goods* such as furniture that lasts for a long time.
- Semi-durable consumer goods that last for a medium term such as clothes are traded in this market.
- *Non-durable* consumer goods that are used only once such as food are traded in this market.
- Services are defined as non-tangible actions and includes wholesale and retail and transport.
2. *Factor markets*
- Households sell factors of production to the businesses and government on the factor market
- The households sell the *natural resources* and receive the remuneration which is rent on this market.
- The businesses [employ labour] using this market and reward them with salaries and wages from this market.
- When businesses *hire machines* out or anything that leads to gross capital formation the remuneration it receives is interest.
3. *Financial markets*
- It is a market whereby the *financial securities* are traded, it acts as a link between households, the business sector and other participants with providing for the money flow.
- This market is divided into two;
3.1 *Money markets*
- In the money market, *short term* loans, deposits and investments funds are saved and borrowed by consumers and business enterprises.
- The *South African Reserve Bank*(SARB) is the key institution in the money market.
- The products sold in this market are bank debentures, treasury bills and government bonds.
3.2 *Capital markets*
- In the capital market *long term* loans, deposits and investments are borrowed and saved by consumers and business enterprises.
- The *Johannesburg Security Exchange* is a key institution in the capital market.
- Products sold in this market are mortgage bonds and shares.
4. *Foreign exchange markets*
- It is a market whereby a *currency* of one country is traded for the currency of another country.
- These transactions occur in banks and consists of an electronic money transfer from one account to another.
- The most important foreign exchange markets are in London/New York/Tokyo, the S.A Rand is traded freely in these markets. e.g. when a person buys travelers cheques to travel abroad.
ADDITIONAL PART
-
CONCLUSION
- Without the markets the economy would not function properly, it is important that the government establish laws to allow them to operate freely to ensure prosperity in our economy.

Let’s break down how to deal with each of these adjustments in Accounting Paper 1 for Grade 12 students, along with examples:

1. Rent Adjustment:
Purpose: Rent expense adjustments ensure that the correct amount of rent is reflected in the financial statements.
Scenario: Suppose a business pays rent monthly for its premises.
Adjustment Example:
The business pays R10,000 rent per month.
The financial year-end is 28 February.
The business has paid rent up to 31 January.
The adjustment is to account for the remaining month (February).
Calculation: R10,000 (monthly rent) × 1 (remaining month) = R10,000.
Adjust the income statement by adding R10,000 as rent expense.
2. Directors’ Fees Adjustment:
Purpose: Directors’ fees adjustments ensure that the correct amount of fees paid to directors is reflected.
Scenario: A company pays directors’ fees annually.
Adjustment Example:
The company pays R120,000 in directors’ fees annually.
The financial year-end is 28 February.
The adjustment is to account for the remaining months (March to February).
Calculation: R120,000 (annual fees) × 11/12 (remaining months) = R110,000.
Adjust the income statement by subtracting R110,000 as directors’ fees.
3. Provision for Bad Debts Adjustment:
Purpose: Provision for bad debts adjustments account for potential uncollectible amounts from debtors.
Scenario: A business estimates that some debtors may not pay their outstanding balances.
Adjustment Example:
The business has a Debtors’ Control account with a balance of R100,000.
The provision for bad debts needs to be adjusted to 5% of the outstanding debtors.
Calculation: R100,000 × 5% = R5,000.
Adjust the income statement by subtracting R5,000 as provision for bad debts.
4. Insurance Adjustment:
Purpose: Insurance adjustments account for prepaid insurance premiums.
Scenario: The business pays an annual insurance premium.
Adjustment Example:
The business paid R12,000 for insurance covering the period from 1 July 2020 to 30 June 2021.
The financial year-end is 28 February.
The adjustment is to account for the remaining months (March to June).
Calculation: R12,000 × 4/12 (remaining months) = R4,000.
Adjust the income statement by subtracting R4,000 as insurance expense.
Remember, adjustments ensure accurate financial reporting and reflect the true financial position of the business. 📊💼

Bank Reconciliation
1. Importance of Reconciliation Monthly:

Bank reconciliation ensures that the balance in the business’ bank account (as recorded in the general ledger) matches the balance on the bank statement received from the bank.
When these balances don’t align, reconciliation helps identify discrepancies and ensures accurate financial records.
2. Format of the Bank Statement:

The bank statement typically includes details such as:
Beginning balance: The balance at the start of the month.
Deposits: Money added to the account.
Withdrawals: Money taken out of the account.
Service charges: Fees charged by the bank.
Interest earned: Interest on account balances.
Ending balance: The balance at the end of the month.
3. Method of Payments:

Understanding the various payment methods (e.g., checks, electronic transfers, direct debits) is crucial for reconciliation.
Reconciling these transactions ensures that all payments and receipts are accurately recorded.
4. Reasons for Differences:

Discrepancies between the bank statement and the ledger can occur due to:
Errors on source documents: Mistakes made during recording.
Statement date differences: Mismatched closing dates.
Casting errors: Incorrect totals in journals.
Omitted or incorrect transactions: Purchases, returns, payments, or discounts.
Posting errors: Incorrect entries in the ledger.
Discounts not accepted: Deductions not acknowledged by creditors.
Balancing errors: Incorrect totals in ledgers.
5. Integration with the Balance Sheet:

Debit balance transfer: Move a creditor’s debit balance from the Creditors Ledger to their account in the Debtors’ Ledger.
Credit balance transfer: Shift a creditor’s credit balance from the Creditors Ledger to their account in the Debtors’ Ledger.
Remember, bank reconciliation ensures financial accuracy and helps maintain reliable records. 🧾💰

For further details, you can refer to the Accounting Gr 12 - Chapter 1 Reconciliation Theory document. Happy accounting! 📚👍

GRADE 12 ECONOMICS P1 JUNE EXAM 2024 SCOPE All Province.

CHAPTER 1; CIRCULAR FLOW (25% Coverage)

-This chapter is super important, it is a gateway to all the others, make sure you know all the concepts.

-It gives us POSSIBLE ESSAY 1 (Discuss in detail the markets within the FOUR-SECTOR model) which you should know for Section C, B & A.

-Questions or concepts you can't go to exam without mastering are:
1. What is circular flow?
2. 4 participants?
3. 2 flows?
4. Leakages & Injections?
5. The 4 markets in circular flow?
6. What is national Accounts ?
7. How many methods to calculate National Accounts?
8. What is a multiplier?
9. How many methods to calculate?
10. How does any leakage affect the multiplier?

-Please note that you have to practice to draw the graph of the multiplier and also explain it.

-Also know the format of the 3 national accounts in detail, including how to calculate, don't leave out the Systems National Account (SNA)

CHAPTER 2; BUSINESS CYCLE (25% Coverage)

-This chapter introduces us fully to the ECONOMICS LANGUAGE, if it is not UPswing it is DOWNswing, if it is not EXogenous it is ENDogenous, if it is not PEAK it is TROUGH, if it is not EMployment it is UNemployment (There is almost always 2 sides of a story in Economics you have to pick a side and then carefully support it with acceptable points)

-This chapter gives us possible essay 2 & 3, POSSIBLE ESSAY 2 (Discuss in detail The new economic paragigm/explain the smoothing of cycles) & POSSIBLE ESSAY 3 (DISCUSS IN DETAIL THE FEATURES UNDERPINNING FORECASTING)

-Some of the questions or content you can't do without is;
1. What is Business cycle?
2. Difference between expansion and contraction?
3. What is the amplitude?
4. Difference between exogenous and endogenous?
5. 4 kinds of business cycle?
6. Can you use fiscal policy & monetary policy to influence the economy?
7. Can you do the Phillips curve with graph?
8. *How about the difference between supply side and demand side?*
9. Do you know the forecasting essay in full?
10. How about the difference between quantitative and quanlitative method of forecasting or research?

-Drawing a full business cycle graph and be able to explain how features such as length & amplitude works is of outmost importance.

-Being able to link the application of fiscal and monetary policy to the graph is a MUST (know how expansionary & contractionary fiscal and monetary policy works)

-The phillips curve graph & the new paradigm graph both use the principles set out in the DEMAND SIDE & SUPPLY SIDE, you have to GO DEEP on this part.

-Business Cycle is the Bone Marrow of the Whole Economics Grade 12, ensure to always use ECONOMIC GROWTH, EMPLOYMENT, INFLATION, & INVESTMENTS in your analysis.

CHAPTER 3; PUBLIC SECTOR (Coverage 25%)

-This chapter gives us possible essay 4 & 5, POSSIBLE ESSAY 4 (Discuss in detail the main objectives of the public sector in the economy) & POSSIBLE ESSAY 5 (Discuss in detail the reason(s) for public sector failure (link them to typical problems experienced through public sector provisioning)

-Some of the questions or content you can't do without is;
1. What are the 3 levels of government and what is a *parastatal*?
2. Give 3 reasons why the public sector is necessary?
3. Can you explain inefficiency & Lack of accountability as problems of public sector provisioning?
4. We have *5 objectives* of the public sector *essay*, you know it?
5. What are the 6 ways in which government gets it's income or revenue?
6. Do you know the difference between *direct & indirect tax* and the explanation of each tax under them such as VAT, paye, green tax, capital gains, company tax, fuel levy, e.t.c?
7. Do you know the effects of *progressive, regressive & regressive tax* on income redistribution?
8. Do you know the laffer curve and also concepts such as *tax evasion and tax avoidance*?
9. The essay of *Public sector failure* which includes headings such as politicians, bureaucracy, apathy e.t.c is important and you are done with it right?
10. You do know the *features of fiscal policy* and that fiscal policy has 3 instruments which are; tax, government spending & borrowing & lending.

-Drawing the laffer curve and being able to correctly interprete the effect of a changed tax rate on tax revenue is super important, also know how motivation to work is derived and discouraged.

-The current budget speech is also super important, you have to know 2 sides of the budget.

-Do not undermine tax, it can be asked in various ways also fiscal policy has to be fully revised here.

CHAPTER 4; FOREIGN EXCHANGE MARKET (25% Coverage)

-Most educators and learners do not want anything to do with this chapter, they literally run for their lives and by doing so their exam is already just 75% instead of 100% which is so unfair.

-The balance of payments, terms of trade and the foreign exchange market graphs are the main reasons why teachers and learners play snake and ladder in this chapter 4, a very dangerous game for a grade 12 to play.

-The last essay is from this chapter and it is quite popular in exam, POSSIBLE ESSAY 6 OF 6 for paper 1 JUNE Exam (Discuss in detail the reasons for international trade)

-Some of the questions or content you can't do without;
1. It is very important to know what *international trade* is and it's *effect on the economy*
2. Do you know how to define the *exchange rate & the foreign exchange market*?
3. *Globalisation is super important* and anything around it.
4. A very important essay which is *The reasons for international trade* which can be divided into *demand reasons & supply reasons* is in your mind right?
5. You know how to define *Balance of payments* and the *3 accounts of balance of payments*? You also know the *errors & omissions & how to calculate trade balance* right?
6. You know what is a *disequilibrium or deficit* in the balance of payments right? And that there is something called *corrections of balance of payment deficit by SARB or GOVERNMENT* right?
7. You know the difference between, *appreciation & revaluation* or the difference between *devaluation & depreciation* right?
8. Can you work on *the graph of the foreign exchange market*? And prove how depreciation & appreciation works?
9. How about the *3 exchange rate system*, from *fixed exchange rate to flexible & managed exchange rate system*?
10. Can you define *the terms of trade*? How about the formula to calculate *terms of trade*?

-Balance of payment is a key to unlock even the next chapters, atleast know what it is and how to correct it.

-To easily master the foreign exchange market graphs use the principle of injection and leakages with/without mentioning them e.g if more People from our home South Africa are buying in USA our Rand will depreciate (decrease in value) this will be shown in the graph by a shift of the demand curve to the right if the exchange rate is plotted as R/$ on the Y-axis and quantity of dollars on the X-axis, this means that you will now need more Rands to get just 1 dollar.,

-The specialist is a master of this chapter 4 content, I shall help you unpack it, this is the end for now.

PLEASE REMEMBER, FOR GRADE 12

SECTION A
Compulsory.

SECTION B
Choose 2 questions out of 3.

SECTION C
Choose 1 Essay out of 2 asked essays which will come from the 6 possible essays I mentioned above.

The total marks for your paper 1 is 150 marks.