Economics 0455 · IGCSE · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

In 2015, Russia prohibited food imports, including milk, from the European Union (EU). Which outcomes are most likely to occur because of this?

  • Amilk market in Europe: excess demand; price of milk in Russia: fall; profits of EU farmers: rise
  • Bmilk market in Europe: excess demand; price of milk in Russia: rise; profits of EU farmers: rise
  • Cmilk market in Europe: excess supply; price of milk in Russia: fall; profits of EU farmers: fall
  • Dmilk market in Europe: excess supply; price of milk in Russia: rise; profits of EU farmers: fall

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