(a)[2]
Compare Canada’s current account balance in 2012 with the 2008 balance.
(b)[4]
Using a diagram, explain how removing tariffs on EU goods imported into Canada would change their price and quantity.
(c)[4]
How would you decide whether Canada’s cheese producers ought to be protected from competition by EU cheese producers?
(d)[4]
Explain, using the theory of comparative advantage, how consumers in both the EU and the Canadian economy can benefit from a move towards free trade.
(e)[6]
Evaluate any additional information that would help you assess the economic impact of Canada’s trade agreement with the EU.