Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
During 2021, the US recorded a deficit in trade in goods on the current account of its balance of payments. The US contains many firms across a broad variety of industries. Import tariffs are applied to shield some of those industries. That year, the US government also increased spending on healthcare to $797bn, which had an impact on many industries in the country.
(a)[2]
Define what is meant by a trade in goods deficit.
(b)[4]
Explain two different ways in which firms can be classified.
(c)[6]
Analyse why a government may choose to shield its country’s industries from foreign competition.
(d)[8]
Discuss whether a government ought to raise its spending on healthcare or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Imports are greater than exports” …