Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

(a)

From Table 1.1:

  • Identify the general movement in Sri Lanka’s balance of trade in goods and services from January 2022 to January 2023. [1]
  • Calculate the percentage change in Sri Lanka’s balance of trade in goods and services between January 2022 and January 2023. [1]
(b)[2]

Explain what is meant by ‘Sri Lanka has enjoyed a comparative advantage in growing and exporting tea.’.

(c)[4]

Consider the extent to which depreciation of the Sri Lankan rupee could improve the country’s balance of trade in goods and services.

(d)[6]

Assess whether the removal of all protectionism is likely to reduce the balance of trade deficit.

(e)[6]

Assess the extent to which supply-side policies will be able to ‘lead Sri Lanka back into economic growth’.

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