Text B, Paragraph 1
In recent trade agreements between Southeast Asian countries, certain restrictions were placed on the number of imported goods allowed into the region, prompting concerns from local industries.
Define the term quota as indicated in (Text B, Paragraph 1).
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Text D, Paragraph 1
To boost international competitiveness, some governments in Latin America have introduced support schemes such as export subsidies for producers, helping them sell more products overseas.
Define the term export subsidies as indicated in (Text D, Paragraph 1).
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Text A, Paragraph 2
Recently introduced tariffs in East Asia have led to higher costs for certain consumer goods. As a result, many businesses and households are reconsidering their purchasing habits.
State two impacts of tariffs on domestic consumers as found in bold (Text A, Paragraph 2).
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Text C, Paragraph 2
After trade restrictions were imposed, domestic producers in China increased their output. Before the policy change, they sold 200,000 units at $50 per unit. Following the restrictions, they sold 250,000 units at $60 per unit.
Calculate the change in producer revenue as a result of the trade restrictions found in (Text C, Paragraph 2).
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Text A, Paragraph 3
Recent discussions in the Middle East have included policies that restrict the quantity of imported goods to enter with additional imports facing higher charges. The use of a tariff rate quota is on the rise.
Define the term tariff rate quota as indicated in bold (Text A, Paragraph 3).
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Text C, Paragraph 3
Japan has agreed to limit the number of goods it sends to specific countries as part of new trade negotiations. These voluntary export restraints can benefit both trading partners.
Define the term voluntary export restraint as indicated in bold (Text C, Paragraph 3).
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Text D, Paragraph 3
The introduction of quotas on textile imports has forced some Asian manufacturers to seek alternative markets, leading to concerns about their levels of production.
State two impacts of quotas on foreign producers as indicated in bold (Text D, Paragraph 3).
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Extract A, Paragraph 1
South Africa's steel industry faces intense competition from Chinese imports. The government has imposed a 25% tariff on imported steel, raising the price from $600 to $750 per tonne. Domestic producers previously supplied 20,000 tonnes at the world price, while imports accounted for 40,000 tonnes. After the tariff, domestic production increased to 30,000 tonnes while imports fell to 20,000 tonnes.
Calculate the impact of South Africa's steel tariff on government revenue and explain the welfare loss caused.
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Extract B, Paragraph 3
Nigeria has implemented a 30% tariff on imported rice to protect domestic farmers. Before the tariff, the domestic price was $500 per tonne, with local farmers supplying 40% of consumption. The world price remains at $500, but with the tariff, the effective import price has risen to $650. Government economists are analysing the impact on different stakeholders.
Using a tariff diagram, explain how Nigeria's rice tariff affects domestic consumers and producers.
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Extract C, Paragraph 2
Peru's textile industry has lobbied for protection against Asian imports. The government has introduced a 15% tariff, raising import prices from $10 to $11.50 per unit. Early data shows domestic production increasing and imports decreasing, but downstream clothing manufacturers report negative impacts.
Explain how Peru's textile tariff might affect downstream producers and national employment in Peru.
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Extract D, Paragraph 4
The Egyptian government has limited rice imports to 100,000 tonnes annually to protect domestic farmers. Before the quota, imports were 250,000 tonnes at the world price of $400 per tonne. After implementation, domestic prices rose to $600 per tonne, with local production increasing from 300,000 to 400,000 tonnes. Agricultural analysts are assessing the impact on different market participants.
Using a quota diagram, explain how Egypt's quota affects domestic producers and consumers.
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Extract B, Paragraph 3
Chile has implemented an annual quota of 50,000 vehicles on imported cars to protect its emerging automotive industry. Previously, imports were 120,000 vehicles at the world price of $15,000. The quota has raised domestic prices to $20,000, allowing local manufacturers to increase production from 30,000 to 70,000 units annually.
Calculate the change in consumer expenditure and domestic producer revenue resulting from Chile's quota.
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Extract A, Paragraph 2
Kenya has established a quota limiting wheat imports to 200,000 tonnes per year, down from previous imports of 500,000 tonnes. As market prices rose from $300 to $450 per tonne, domestic production increased from 300,000 to 500,000 tonnes. However, local food processors report significant changes in their costs affecting operations.
Explain how Kenya's wheat quota affects two different stakeholders.
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Extract A, Paragraph 4
The Turkish government provides a $100 per tonne subsidy to textile exporters. The subsidy has reduced textile imports from 50,000 to 20,000 tonnes annually. Domestic production has increased from 30,000 to 60,000 tonnes, though critics argue about the policy's efficiency.
Using a demand and supply diagram, explain how Turkey's subsidies affect the textile market.
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Extract D, Paragraph 3
The United Arab Emirates has implemented new health and safety regulations for imported dairy products, requiring additional testing not required for domestic producers. The regulations specify maximum bacterial levels 20% lower than international standards. New Zealand dairy exporters report that compliance increases costs by 30% per shipment.
Explain how technical regulations can be used as trade protection in the UAE.
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Extract A, Paragraph 3
Vietnam has established new environmental standards for imported steel, requiring certification of carbon emissions during production. While domestic producers receive government assistance for certification, foreign manufacturers must fund independent audits costing $100,000 annually. Chinese steel exports to Vietnam have fallen by 40% since implementation.
Explain how environmental regulations can function as administrative barriers to trade in Vietnam.
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