(a)[8]
- Calculate the balance of trade in goods between Australia and Thailand in 2002. [2]
- What differences appeared in the kinds of goods traded between the two countries? [2]
- Explain what may have led to these differences. [4]
(b)[6]
- Name two protective measures, apart from tariffs, that limit free trade. [2]
- Explain, using a demand and supply diagram, how domestic producers of a good are affected when the tariff on imports of that good is removed. [4]
(c)[6]
Discuss whether Australia and Thailand should have removed all tariffs at once.