Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
In Pakistan, the range of cars available to purchase is limited. The country has a population of approximately 190 million, yet only about 120 000 cars a year are made there. Car producers in Pakistan are shielded from overseas competition by several forms of trade protection.
(a)[2]
Name two factors of production involved in making cars.
(b)[4]
Explain how two methods of trade protection may reduce imports.
(c)[6]
Analyse the social costs arising from car production and car use.
(d)[8]
Discuss whether future demand for cars is likely to rise.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Labour” …