(a)[2]
Identify two features of a sole proprietor.
(b)[4]
Explain how government subsidies can help firms grow larger.
(c)[6]
Analyse three advantages enjoyed by small firms.
(d)[8]
Discuss whether putting tariffs in place will benefit an economy.
Economics 0455 · IGCSE · Firms
Firms — practice question
China’s solar power industry contains the world’s largest solar panel firms. Their expansion has been supported by low labour costs and government subsidies. Solar panel firms are smaller in Europe, where some are sole proprietors. In 2013 the European Union was considering a tariff of 47% on Chinese solar panels.