Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
The South Korean government believes that Japan is dumping steel. South Korean firms both trade with other countries and manufacture there too. Some South Korean multinational companies (MNCs) say they help to reduce poverty in their host countries. In 2019, South Korean firms were hit by a depreciation in South Korea’s foreign exchange rate. Some firms also faced a shortage of workers, and this was linked to the country’s very low birth rate.
(a)[2]
Define dumping in international trade.
(b)[4]
Explain two reasons why a country’s foreign exchange rate may fall in value.
(c)[6]
Analyse how an MNC could help to reduce poverty in a host country.
(d)[8]
Discuss whether a very low birth rate should or should not concern a government.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Selling a product overseas for less than its cost price” …