Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Leading jewellery firms in Qatar and Ukraine have urged their governments to end trade protection between the two countries so that jewellery trade can grow. The jewellery businesses in Qatar and Ukraine make distinctive products and are improving in quality. They think that greater trade between the two countries will allow them to benefit from internal economies of scale in jewellery production.
(a)[2]
Identify any two internal economies of scale.
(b)[4]
Explain two methods of protection used in international trade.
(c)[6]
Analyse, using a demand and supply diagram, the impact of higher quality products on the jewellery market.
(d)[8]
Discuss whether protection in international trade is 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: “Internal economies of scale: purchasing, managerial, technical, financial, risk-bearing, labour, and marketing.” …