(a)
- Compare the US balance of trade with India in 2009 and in 2014. [2]
- Explain two factors, apart from India’s ban on US agricultural products, that might account for the change in the US balance of trade that you have identified. [4]
- Besides the balance of trade in goods, which other balances would you need in order to calculate the US current account balance with India? [2]
(b)
- Draw a diagram to show how an import duty on a product changes its price. [2]
- What is likely to determine how large the change in sales will be when an import duty is imposed on US cars in China? [2]
- Explain one possible reason China imposed export quotas on tungsten and molybdenum. [2]
(c)[6]
Consider whether the protectionist measures used by countries such as India, China and Argentina in trade with the US could ever be justified.