Economics 0455 · IGCSE · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Tariffs between South east Asian countries have been lowered by the ASEAN Free Trade Agreement. ASEAN member countries are also getting rid of non-tariff protection methods. The purpose is to boost economic growth through greater international trade. This should allow small and medium-sized firms in ASEAN countries to expand and raise their exports.
(a)[2]
Define tariffs briefly.
(b)[4]
Explain two non-tariff forms of protection.
(c)[6]
Analyse, using a production possibility curve (PPC) diagram, the positive effects for a country of the expansion of its small and medium-sized firms.
(d)[8]
Discuss whether increased international trade can, or cannot, promote economic growth.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A tariff is a form of tax” …