A-level
ECONOMICS A-level
Paper 2 National and International Economy
ECONOMICS
Monday 18 May 2026 Afternoon Time allowed: 2 hours 7136/2
Materials Paper 2 National and International Economy
For t per you must have:
• an 12-page answer book
• ac tor. Mark scheme
Instructions June 2026
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book. Version: 1.0 Final
The Paper Reference is 7136/2.
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
Information
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
Advice
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
IB/M/Jun26/G4003/V5 7136/2
, 2
MARK SCHEME – A-LEVEL ECONOMICS – 7136/2 – JUNE 2026
Section A
Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant
Answer EITHER Context 1 OR Context 2.
questions, by a panel of subject teachers. This mark scheme includes any amendments made at the
standardisation events which all associates participate in and is the scheme which was used by them in
this examination. The standardisation process ensures that the mark scheme covers the students’
EITHER
responses to questions and that every associate understands and applies it in the same correct way.
Context 1 The UK’s international competitiveness Total for this context: 40 marks As preparation for standardisation each associate analyses a number of students’ scripts. Alternative
answers not already covered by the mark scheme are discussed and legislated for. If, after the
Study Extracts A, B and C, and then answer all parts of Context 1 which follow. standardisation process, associates encounter unusual answers which have not been raised they are
required to refer these to the Lead Examiner.
Extract A:
It must be stressed that a mark scheme is a working document, in many cases further developed and
Figure 1: UK monthly balance of trade in goods and Figure 2: Top 5 UK goods exports, expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark
services, £bn, January 2020 to December share of total value, 2024 schemes on the basis of one year’s document should be avoided; whilst the guiding principles of
2024 assessment remain constant, details will change, depending on the content of a particular examination
paper.
Category Share (%)
No student should be disadvantaged on the basis of their gender identity and/or how they refer to the
Cars 9.0 gender identity of others in their exam responses.
Mechanical power
8.9 A consistent use of ‘they/them’ as a singular and pronouns beyond ‘she/her’ or ‘he/him’ will be credited in
generators
exam responses in line with existing mark scheme criteria.
Pharmaceuticals 6.7
Crude oil 4.6
Further copies of this mark scheme are available from
Aircraft 3.5
Source: ONS, August 2025 Source: , September 2025
Extract B: How internationally competitive is the UK economy?
International competitiveness refers to a country’s ability to produce goods and services that are
able to compete with other countries in terms of price, quality, innovation and branding. In the
short term, exchange rates and inflation can affect a nation’s competitiveness. However, in the
long term competitiveness is shaped by structural elements, including the skills of the labour
force, research and development, the capital stock and productivity. 5
The UK benefits from a strong financial sector, advanced technological infrastructure and a
high-quality education system, which help give it a competitive advantage in services. However,
the UK has faced challenges in being competitive with its export of goods. A combination of high
production costs, a relatively small manufacturing base and trade barriers, following leaving the
European Union, have made it more difficult to access key international markets. 10
Some argue that the UK Government should adopt more interventionist supply-side policies to information
increase exports. Others believe a free-market approach is the key driver of competitiveness.
retains the on all its publications. Ho r, registered schools/colleges for are permitted to copy material from this booklet for their own
Source: News reports, 2025 al use, wit ing important exception: cannot give permission to schoo leges to photocopy any material that is acknowledged to a
third party even for internal use within the centre.
and its licensors. All rights reserved.
2
IB/M/Jun26/7136/2
, 3
MARK SCHEME – A-LEVEL ECONOMICS – 7136/2 – JUNE 2026
Extract C: Challenges for the UK’s competitiveness
In 2021, the UK was ranked 18th out of 67 economies in terms of international
Level of response marking instructions
competitiveness. However, by 2024, the UK had dropped to 28th in the rankings. These
Level of response mark schemes are broken down into levels, each of which has a descriptor. The
rankings are based on four key indicators: economic performance, government efficiency,
descriptor for the level shows the average performance for the level. There are marks in each level.
business efficiency and infrastructure.
Before you apply the mark scheme to a student’s answer read through the answer and annotate it (as
Additionally, the UK ranked 30th out of 38 major economies on the 2024 International Tax 5
instructed) to show the qualities that are being looked for. You can then apply the mark scheme.
Competitiveness Index. This low position is largely attributed to the increase in the main rate
of corporation tax from 19% to 25% in 2023. As a result, the UK now trails behind countries
such as Hungary (7th), Germany (15th) and the United States (18th). This may weaken the Step 1 Determine a level
UK’s appeal to multinational corporations and make it more difficult for the Government to
achieve its objective of attracting more foreign direct investment and thereby increasing 10 Start at the lowest level of the mark scheme and use it as a ladder to see whether the answer meets the
international competitiveness. descriptor for that level. The descriptor for the level indicates the different qualities that might be seen in
the student’s answer for that level. If it meets the lowest level then go to the next one and decide if it
Rising global protectionism and the UK’s departure from the European Union are seen by meets this level, and so on, until you have a match between the level descriptor and the answer. With
some to have contributed to the decline in the UK’s international competitiveness. However, practice and familiarity you will find that for better answers you will be able to quickly skip through the
recent trade agreements with several countries, aimed at removing tariffs and other lower levels of the mark scheme.
restrictions, could help improve the UK’s trade in goods and services and increase 15
economic growth. When assigning a level you should look at the overall quality of the answer and not look to pick holes in
Source: News reports, 2025
small and specific parts of the answer where the student has not performed quite as well as the rest. If
the answer covers different aspects of different levels of the mark scheme you should use a best fit
Using the data in Extract A (Figure 2), if the total value of goods exported in 2024 was approach for defining the level and then use the variability of the response to help decide the mark within
0 1
£365.7bn, calculate the difference between the value of exports of cars and aircraft. the level, ie if the response is predominantly level 3 with a small amount of level 4 material it would be
placed in level 3 but be awarded a mark near the top of the level because of the level 4 content.
Give your answer to the nearest billion pounds.
[2 marks] Step 2 Determine a mark
0 2 Explain how the data in Extract A (Figure 1) show how the UK had become less Once you have assigned a level you need to decide on the mark. The descriptors on how to allocate
internationally competitive between January 2020 and December 2024. marks can help with this. The exemplar materials used during standardisation will help. There will be an
[4 marks] answer in the standardising materials which will correspond with each level of the mark scheme. This
answer will have been awarded a mark by the Lead Examiner. You can compare the student’s answer
with the example to determine if it is the same standard, better or worse than the example. You can then
0 3 Extract C (lines 14–16) states: ‘recent trade agreements with several countries, aimed at use this to allocate a mark for the answer based on the Lead Examiner’s mark on the example.
removing tariffs and other restrictions, could help improve the UK’s trade in goods and
services and increase economic growth.’ You may well need to read back through the answer as you apply the mark scheme to clarify points and
assure yourself that the level and the mark are appropriate.
With the help of a diagram, explain how the removal of tariffs by a foreign government
could help to increase economic growth in the UK. Indicative content in the mark scheme is provided as a guide for examiners. It is not intended to be
[9 marks] exhaustive and you must credit other valid points. Students do not have to cover all of the points
mentioned in the Indicative content to reach the highest level of the mark scheme.
0 4 Extract B (lines 11–12) states: ‘Some argue that the UK Government should adopt more
interventionist supply-side policies to increase exports. Others believe a free-market An answer which contains nothing of relevance to the question must be awarded no marks.
approach is the key driver of competitiveness’.
Using the data in the extracts and your knowledge of economics, evaluate policies that the
UK Government could use to increase exports.
[25 marks]
3
IB/M/Jun26/7136/2 Turn over ►
ECONOMICS A-level
Paper 2 National and International Economy
ECONOMICS
Monday 18 May 2026 Afternoon Time allowed: 2 hours 7136/2
Materials Paper 2 National and International Economy
For t per you must have:
• an 12-page answer book
• ac tor. Mark scheme
Instructions June 2026
• Use black ink or black ball-point pen. Pencil should only be used for drawing.
• Write the information required on the front cover of your answer book. Version: 1.0 Final
The Paper Reference is 7136/2.
• In Section A, answer EITHER Context 1 OR Context 2.
• In Section B, answer ONE essay.
Information
• The marks for questions are shown in brackets.
• The maximum mark for this paper is 80.
• There are 40 marks for Section A and 40 marks for Section B.
Advice
• You are advised to spend 1 hour on Section A and 1 hour on Section B.
IB/M/Jun26/G4003/V5 7136/2
, 2
MARK SCHEME – A-LEVEL ECONOMICS – 7136/2 – JUNE 2026
Section A
Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant
Answer EITHER Context 1 OR Context 2.
questions, by a panel of subject teachers. This mark scheme includes any amendments made at the
standardisation events which all associates participate in and is the scheme which was used by them in
this examination. The standardisation process ensures that the mark scheme covers the students’
EITHER
responses to questions and that every associate understands and applies it in the same correct way.
Context 1 The UK’s international competitiveness Total for this context: 40 marks As preparation for standardisation each associate analyses a number of students’ scripts. Alternative
answers not already covered by the mark scheme are discussed and legislated for. If, after the
Study Extracts A, B and C, and then answer all parts of Context 1 which follow. standardisation process, associates encounter unusual answers which have not been raised they are
required to refer these to the Lead Examiner.
Extract A:
It must be stressed that a mark scheme is a working document, in many cases further developed and
Figure 1: UK monthly balance of trade in goods and Figure 2: Top 5 UK goods exports, expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark
services, £bn, January 2020 to December share of total value, 2024 schemes on the basis of one year’s document should be avoided; whilst the guiding principles of
2024 assessment remain constant, details will change, depending on the content of a particular examination
paper.
Category Share (%)
No student should be disadvantaged on the basis of their gender identity and/or how they refer to the
Cars 9.0 gender identity of others in their exam responses.
Mechanical power
8.9 A consistent use of ‘they/them’ as a singular and pronouns beyond ‘she/her’ or ‘he/him’ will be credited in
generators
exam responses in line with existing mark scheme criteria.
Pharmaceuticals 6.7
Crude oil 4.6
Further copies of this mark scheme are available from
Aircraft 3.5
Source: ONS, August 2025 Source: , September 2025
Extract B: How internationally competitive is the UK economy?
International competitiveness refers to a country’s ability to produce goods and services that are
able to compete with other countries in terms of price, quality, innovation and branding. In the
short term, exchange rates and inflation can affect a nation’s competitiveness. However, in the
long term competitiveness is shaped by structural elements, including the skills of the labour
force, research and development, the capital stock and productivity. 5
The UK benefits from a strong financial sector, advanced technological infrastructure and a
high-quality education system, which help give it a competitive advantage in services. However,
the UK has faced challenges in being competitive with its export of goods. A combination of high
production costs, a relatively small manufacturing base and trade barriers, following leaving the
European Union, have made it more difficult to access key international markets. 10
Some argue that the UK Government should adopt more interventionist supply-side policies to information
increase exports. Others believe a free-market approach is the key driver of competitiveness.
retains the on all its publications. Ho r, registered schools/colleges for are permitted to copy material from this booklet for their own
Source: News reports, 2025 al use, wit ing important exception: cannot give permission to schoo leges to photocopy any material that is acknowledged to a
third party even for internal use within the centre.
and its licensors. All rights reserved.
2
IB/M/Jun26/7136/2
, 3
MARK SCHEME – A-LEVEL ECONOMICS – 7136/2 – JUNE 2026
Extract C: Challenges for the UK’s competitiveness
In 2021, the UK was ranked 18th out of 67 economies in terms of international
Level of response marking instructions
competitiveness. However, by 2024, the UK had dropped to 28th in the rankings. These
Level of response mark schemes are broken down into levels, each of which has a descriptor. The
rankings are based on four key indicators: economic performance, government efficiency,
descriptor for the level shows the average performance for the level. There are marks in each level.
business efficiency and infrastructure.
Before you apply the mark scheme to a student’s answer read through the answer and annotate it (as
Additionally, the UK ranked 30th out of 38 major economies on the 2024 International Tax 5
instructed) to show the qualities that are being looked for. You can then apply the mark scheme.
Competitiveness Index. This low position is largely attributed to the increase in the main rate
of corporation tax from 19% to 25% in 2023. As a result, the UK now trails behind countries
such as Hungary (7th), Germany (15th) and the United States (18th). This may weaken the Step 1 Determine a level
UK’s appeal to multinational corporations and make it more difficult for the Government to
achieve its objective of attracting more foreign direct investment and thereby increasing 10 Start at the lowest level of the mark scheme and use it as a ladder to see whether the answer meets the
international competitiveness. descriptor for that level. The descriptor for the level indicates the different qualities that might be seen in
the student’s answer for that level. If it meets the lowest level then go to the next one and decide if it
Rising global protectionism and the UK’s departure from the European Union are seen by meets this level, and so on, until you have a match between the level descriptor and the answer. With
some to have contributed to the decline in the UK’s international competitiveness. However, practice and familiarity you will find that for better answers you will be able to quickly skip through the
recent trade agreements with several countries, aimed at removing tariffs and other lower levels of the mark scheme.
restrictions, could help improve the UK’s trade in goods and services and increase 15
economic growth. When assigning a level you should look at the overall quality of the answer and not look to pick holes in
Source: News reports, 2025
small and specific parts of the answer where the student has not performed quite as well as the rest. If
the answer covers different aspects of different levels of the mark scheme you should use a best fit
Using the data in Extract A (Figure 2), if the total value of goods exported in 2024 was approach for defining the level and then use the variability of the response to help decide the mark within
0 1
£365.7bn, calculate the difference between the value of exports of cars and aircraft. the level, ie if the response is predominantly level 3 with a small amount of level 4 material it would be
placed in level 3 but be awarded a mark near the top of the level because of the level 4 content.
Give your answer to the nearest billion pounds.
[2 marks] Step 2 Determine a mark
0 2 Explain how the data in Extract A (Figure 1) show how the UK had become less Once you have assigned a level you need to decide on the mark. The descriptors on how to allocate
internationally competitive between January 2020 and December 2024. marks can help with this. The exemplar materials used during standardisation will help. There will be an
[4 marks] answer in the standardising materials which will correspond with each level of the mark scheme. This
answer will have been awarded a mark by the Lead Examiner. You can compare the student’s answer
with the example to determine if it is the same standard, better or worse than the example. You can then
0 3 Extract C (lines 14–16) states: ‘recent trade agreements with several countries, aimed at use this to allocate a mark for the answer based on the Lead Examiner’s mark on the example.
removing tariffs and other restrictions, could help improve the UK’s trade in goods and
services and increase economic growth.’ You may well need to read back through the answer as you apply the mark scheme to clarify points and
assure yourself that the level and the mark are appropriate.
With the help of a diagram, explain how the removal of tariffs by a foreign government
could help to increase economic growth in the UK. Indicative content in the mark scheme is provided as a guide for examiners. It is not intended to be
[9 marks] exhaustive and you must credit other valid points. Students do not have to cover all of the points
mentioned in the Indicative content to reach the highest level of the mark scheme.
0 4 Extract B (lines 11–12) states: ‘Some argue that the UK Government should adopt more
interventionist supply-side policies to increase exports. Others believe a free-market An answer which contains nothing of relevance to the question must be awarded no marks.
approach is the key driver of competitiveness’.
Using the data in the extracts and your knowledge of economics, evaluate policies that the
UK Government could use to increase exports.
[25 marks]
3
IB/M/Jun26/7136/2 Turn over ►
