Economics 0455 · IGCSE · Current account of balance of payments
Current account of balance of payments — practice question
Trade protection limits the opportunity for countries to specialise and affects the current account positions that countries record in their balance of payments. The extent and forms of trade protection used by developed and developing countries are different. Developed countries also generally have a lower death rate than developing countries.
(a)[2]
Define ‘trade protection’.
(b)[4]
Explain two advantages of countries specialising.
(c)[6]
Analyse why developed countries usually have lower death rates than developing countries.
(d)[8]
Discuss whether a rise in income tax will reduce a current account deficit.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Shielding domestic firms from foreign competition” …