Economics 0455 · IGCSE · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

Country X sells steel to country Y at a price that is lower than the cost of producing it. As a result, demand for steel made in country Y has fallen. What is one trade protection measure that country Y could use to reduce steel imports from country X?

  • Aapply anti-dumping tariffs
  • Bincrease interest rates
  • Crevalue the currency
  • Dsubsidise the export of steel

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