(a)
Use Table 1.1 to help you answer parts (i), (ii) and (iii).
- With which TPP member did New Zealand record the largest deficit in trade in goods in the year ended June 2015? Explain your answer. [2]
- For the year ended June 2015, New Zealand’s balance of trade in goods together with its services balance was estimated to be NZ$2400m. Calculate New Zealand’s services balance. [2]
- Which two additional items are required to calculate New Zealand’s current account balance? [2]
(b)[4]
Use the principle of comparative advantage to explain why New Zealand is likely to gain from membership of the TPP.
(c)[4]
Explain the likely effects of removing protection on the incomes of Canada’s farmers.
(d)[6]
Discuss whether China joining the TPP would be likely to bring overall benefit to existing TPP members.