Economics 0455 · IGCSE · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

There was a worldwide steel surplus in 2017. In mid-2017, the US government was considering tariffs on steel imports to shield its shrinking steel industry. Low-cost imports from other countries were cutting jobs in the US steel industry. Changes in education were also shaping the pattern of US employment.
(a)[2]

Identify two trade protection methods other than tariffs.

(b)[4]

Explain how market forces remove a surplus and a shortage.

(c)[6]

Analyse how improvements in education may influence the pattern of employment.

(d)[8]

Discuss whether or not a country’s imposition of import tariffs will reduce unemployment.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Import quotas

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