Economics 2281 · O Level · Globalisation, free trade and protection
Globalisation, free trade and protection — practice question
Trade protection narrows the scope for countries to specialise and affects the current account balances that countries record in their balance of payments. Developed countries and developing countries also differ in how much trade protection they apply and in the forms it takes. Developed countries usually have a lower death rate than developing countries too.
(a)[2]
Define the term ‘trade protection’.
(b)[4]
Explain two benefits of countries specialising.
(c)[6]
Analyse the reasons why developed countries generally experience lower death rates than developing countries.
(d)[8]
Discuss whether an increase in income tax will cut a current account deficit.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “shielding domestic firms” …