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Cambridge IGCSE Economics practice

Paper 2 structured question: Globalisation, free trade and protection

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2

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4

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Globalisation, free trade and protection

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Paper 2Structured Questions4 marks

Country B has responded to Country A's tariffs by imposing its own tariffs on goods imported from Country A.

Description

Retaliation by Country B

As a result of Country A's protectionist measures, Country B's government has decided to protect its own industries by implementing tariffs on imports from Country A. This has led to a decrease in trade between the two countries.

  1. a

    Explain the implications of Country B's tariffs for both Country B and Country A.

    Aim for approximately 4 distinct marking points.

    [4]

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Paper 2 structured question: Globalisation, free trade and protection

Paper 2Structured Questions1 marks

Description

Impact of Tariffs on Country A

Country A has seen a rise in the prices of imported goods due to the new tariffs. Local manufacturers are benefiting from reduced competition, but consumers are facing higher costs.

  1. a

    State one effect of the tariffs on consumers in Country A.

    Aim for approximately 1 distinct marking point.

    [1]