Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In the 1990s, Cambodia shifted to a mixed economy. A consequence of this was greater specialisation in the clothing industry. In 2005, clothing import quotas in the main USA and EU markets were lifted. Clothing now makes up 80% of Cambodia’s exports. A larger private sector has led to more malnutrition in Cambodia.
(a)[2]
Define what is meant by import quota.
(b)[4]
Explain two benefits to a country from specialisation.
(c)[6]
Analyse the impact on an economy when import quotas set by other countries are removed.
(d)[8]
Discuss whether an increase in the role of the private sector will be beneficial for an economy.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A cap” …