Explain two tools of protection used by a country when trading internationally and consider whether one is likely to have more of an impact on the country’s economy than the other.
Assess whether all consumers, all producers and the government in a country will benefit equally from protectionism.
Explain two methods of protection in international trade and consider which of these is likely to have the bigger impact on employment and output in the economy which imposes them.
Assess whether protectionism is always the best way of reducing a deficit on the current account of the balance of payments.
Explain, using examples, what is meant by ‘protectionism’ and show with the help of a diagram how export subsidies can be considered as a form of protectionism.
Discuss the arguments that are used to justify protectionism and consider whether these arguments can ever be justified.
Outline why the US would claim that subsidies to Chinese steel makers give them an ‘unfair advantage in world markets’.
With the help of a diagram explain how the imposition of import tariffs on steel will protect domestic producers of steel in India.
Explain who could lose in China as a result of the imposition of tariffs on Chinese steel.
Explain who could lose in the EU as a result of the imposition of tariffs on Chinese steel.
With reference to the principle of comparative advantage, discuss whether the increase in exports of EU services to China could justify free trade in the market for steel.
Assess whether the potential benefits of free trade always outweigh the arguments for protectionism.
Assess whether it is better to use protectionist policies or contractionary policies to reduce a deficit on the current account of the balance of payments.
Assess the extent to which different tools of protection can impact on the terms of trade in an economy.