The document provides advice and guidance on exam technique for the OCR F585 exam. It discusses [1] reading questions carefully, [2] using diagrams and frameworks to support answers, [3] spending more time on higher mark questions that require analysis and evaluation, and [4] always providing a reasoned conclusion for evaluation questions. It also outlines the mark allocation and levels of response expected for different types of questions on the exam.

2. Brief Hints on OCR F585 Exam Technique

3. Advice on Exam Technique
1. The F585 exam paper last two hours
2. There are sixty marks available.
3. You have approximately 2 minutes per mark
4. You may be eligible to receive extra time in the exam
5. Read each question carefully and do not start answering
until you are clear what the question requires! This will
help you target a response
6. Make clear reference to the case study extracts and
figures in your answers especially when given a steer to
do so in the question!
7. Keep in mind that the higher marks are reserved for
analysis and evaluation, so please do not spend too
long on the shorter questions

4. Advice on Exam Technique
7. All questions are compulsory
8. Good quality diagrams can make a big difference to your
answers and marks – examiners like a clear analytical
framework such as AD/AS analysis, trade analysis
9. Recent examiners’ reports are worth reading – they say in
clear terms that they are looking for students to show an
ability to recognise how theoretical frameworks and the
toolkit of concepts can be applied to the case study context.
Examiners want students to make reasoned judgements on
the issues raised.
10. In the final evaluation questions, always try to include a final
reasoned conclusion to support the evaluation “it is the
ability to reason through a judgement, rather than simply
paraphrase what has gone before, which makes the best
conclusions stand out.”

5. Mark Allocation on the F585 Paper
• The questions follow the order of the extract
• Here is the mark allocation for individual questions on the
paper (part and sub part)
• 1 / a 4 marks - e.g. define, describe what is meant by /
distinguish between / state and explain
• 1 / b 6 marks – e.g. using a diagram, analyse why
• 1 / c 10 marks – e.g. comment on the case for
• 2 / a 4 marks – e.g. explain two possible reasons for
• 2 / b 6 marks – e.g. analyse the impact of
• 2 / c 10 marks – e.g. comment on the extent to which
• 3 / 20 marks – discuss / assess the view

6. The 4 Mark Questions
• Learn key definitions really well
• Provide precise, accurate but full definitions
• E.g. distinguish between absolute and comparative
advantage

7. The Analysis Questions (6 marks)
• Analysis questions on this paper carry 6 marks
• Best ways to claim these six marks
1. Define key term(s) in the question
2. You must refer to the charts/tables in the pre-release if
asked to do so by the question! (Make this clear!)
3. Apply these terms to the question being asked
4. Lay out the economic theory e.g. analyse two reasons,
two costs, two benefits
5. Make two points and then analyse the cause and effect
for each point
6. Where possible, always make use of an analysis diagram
+ explain it!

8. The Comment Questions (10 marks)
• Comment means you need to evaluate!
• 1st - Build your analysis as for the 6 mark question
• 2nd - Then add in some evaluation / discussion based on
evidence rather than opinion
• Perhaps challenge the economic theory
• Evaluate using the phrase “it depends on”

9. The F585 Discussion Essay Question (20 marks)
• Build your answer through the OCR levels of response – progressing
through each level in term
1. Level 1: Definitions of key terms in the question
2. Level 2: Analysis and Application of the basic theory, + use of
data from the extracts
3. Level 3: Depth Analysis – including use of diagrams +
associated explanations. Aim for two main analysis points –
focusing on a key point, cause and consequence
4. Level 4: Evaluation – a two sided discussion required with two
main evaluation arguments made. Evaluation can focus on
limitations of the theory and/or it depends on arguments
• The essay must have a balanced reasoned final judgement to get
full marks i.e. to get into the 18-20 range of marks.
• In the final judgement make explicit reference to the question
again and develop a clear case for or against the question.
• Use evidence from the extracts and your own knowledge

10. Preparing for the OCR June 2016 F585 Paper
• Read through the case study paper and underline the key economic
concepts – remember the OCR favours the toolbox of concepts –
define, explain, analyse and evaluate using them!
• Create a folder on your computer for useful online resources for
each of the main extracts
• Print off a copy of the OCR specification and pay very close
attention to the detail of the F585 syllabus.
• In particular look in detail at the right hand column that says
“candidates should be able to”. These are the skills that you will be
tested on in the exam
• Check through the OCR specification and the June 2016 case study
and map out the main areas of commonality.
• Well ahead of the exam, start practicing exam questions for all of
the different components, e.g. the 2, 4, 6, 10 and 20 mark
questions. Feedback from your teachers will be invaluable!

11. Extract 1: Key Term Glossary
Key term Brief definition
Globalisation
Globalisation is a process of deeper economic integration and inter-
dependence between countries shown by a rise in the ratio of trade to GDP
Capital markets These are markets for bonds (debt) and equities (shares)
Foreign direct investment
Inflows of capital from foreign multinationals (TNCs) including takeovers and
investment in new factories
Specialisation Specializing factor inputs in a certain task in order to increase productivity
Trade barriers
Trade barriers are ways in which international trade is controlled for example
an import tariff, quota or embargo
Division of labour Breaking down production into smaller individual tasks
Comparative advantage
Comparative advantage refers to the relative cost advantage that one
country has over another, trade is often based on comparative advantage
Economic efficiency Efficiency means making optimum use of scarce factor inputs
Import tariffs Ad valorem taxes on the value of imported products
Absolute advantage
Absolute advantage is the ability to produce a product (good or service) at a
lower absolute unit cost than in another country.

12. Extract 2: Key Term Glossary
Key term Brief definition
Balance of Payments imbalances Persistent deficits or surpluses mainly on the current account
Current account balance
The current account measures the difference between money
and credit going in and out of an economy (through exports,
imports and income paid on assets both home and abroad)
Current account surplus When net external trade and income is positive
Current account deficit
When net external trade and income is negative leading to a net
outflow of demand from the circular flow
Effective exchange rate index The trade-weighted external value of a currency
Financial flows Flows of capital across national borders including debt and equity
Excess savings When gross national savings > gross capital investment
Capital (financial) account (BoP) Balance of investment flows into and out of a country
Depreciation Fall in the external value of one currency against another
Marshall Lerner Condition
A devaluation of a currency improves the BoP only if the
combined (or sum of) price elasticities of demand for imports &
exports are greater than one.

13. F585 Extract 3: Key Term Glossary
Key Term Brief Definition
Human Development Index (HDI)
Human Development Index captures the level of income and measures
of health (life expectancy) and education (school enrolment and literacy
rate) to show progress in people’s well-being and basic quality of life
Terms of Trade (ToT)
The terms of trade is the ratio of prices that a country receives for its
exports of goods and services compared to prices it pays for its imports
Capital accumulation Using investment to build capital assets such as roads, ports, buildings
Creeping protectionism
Where import tariffs rise + there is more use of import quotas and
barriers to the mobility (free movement) of labour and capital
Deindustrialization
A decline in the share of national income and jobs from manufacturing
industries
Purchasing Power Parity (PPP)
Purchasing Power Parity (PPP) is the exchange rate needed for say $100
to buy the same quantity of products in each country.
Prebisch Singer Hypothesis
States that the terms of trade between primary and manufactured
products deteriorate over time threatening growth for poorer countries
External economic shocks
Unpredictable outside events such as volatile prices for commodities
which have a significant effect on economic growth, jobs & real incomes

14. Extract 4: Key Term Glossary
Key Term Brief Definition
Remittances
Money sent by people living and working overseas back to their
country of origin – usually sent back to their families
Foreign savings
Foreign savings can flow into countries and provide a supplement to
domestic savings. They include aid, private FDI and capital flows
Overseas development assistance
Development aid from one government to another for example in
the form of humanitarian assistance
Portfolio investment
Financial capital flowing from one country into another into bonds
and equities (shares)
Brain drain
The movement of highly skilled or professional people from their
own country to another country where they can earn more money
Human capital The value of the human input into production
Foreign Direct Investment (FDI)
Cross-border investments made by multinational businesses from
one country into another, with the aim of a establishing a lasting
interest in the company receiving the investment
Capital flight
The rapid movement of large sums of money out of a country.
Reasons include a lack of confidence in a country's economy and/or
its currency and political turmoil.

15. Extract 5: Key Term Glossary
Key Term Brief Definition
Foreign direct investment
(FDI)
Long term participation by country A into country B. such as
participation in management, joint-venture, transfers of technology
Financial inclusion
The ability of a household to access credit, insurance and savings
facilities for example to allow them borrow and save at different times
Harrod-Domar Model
An idea that GDP is directly linked to the stock of physical capital but
that there are diminishing returns from additions to the capital stock
Inclusive growth
Growth where the benefits are spread across all sections of society – i.e.
broad based growth, shared growth, and pro-poor growth
Inward oriented development
Policy that attempts to achieve development by stimulating domestic
industry and import substitution behind trade barriers
Revealed comparative
advantage
Calculated as the share of industry X in the economy’s exports divided by
the share of industry X in global exports. The comparative advantage of
a particular economy is ‘revealed’ when this ratio is greater than 1
Unbalanced economy
An increasingly common feature of most modern economies. E.g.
imbalances between: (i) savings & investment (ii) domestic & external
demand (iii) public & private sectors (iv) formal & informal economic
activity (v) Balance of payments deficits and surpluses (current account)