(a)
- In 2015, how did the EU’s balance of trade in goods with China compare with the 2010 balance? [2]
- How did the EU’s services trade balance with China differ from its balance of trade in goods with China during 2010 to 2015? [2]
(b)[2]
Outline why the US would argue that subsidies for Chinese steel makers give them an ‘unfair advantage in world markets’.
(c)[4]
Using a diagram, explain how the introduction of import tariffs on steel will protect domestic steel producers in India.
(d)
- Explain who could lose out in China because tariffs are imposed on Chinese steel. [2]
- Explain who could lose out in the EU because tariffs are imposed on Chinese steel. [2]
(e)[6]
Using the idea of comparative advantage, discuss whether the growth in EU exports of services to China could be used to support free trade in the steel market.