Arguments for & Against Trade Protection (DP IB Economics: HL)

Text E, Paragraph 1
Policymakers in Europe have debated whether to provide more support for sunset industries, which have struggled to remain competitive in recent years.

Define the term sunset industries as indicated in bold (Text E, Paragraph 1).

Text B, Paragraph 2
South Africa has been grappling with a current account deficit, which has raised concerns about the sustainability of its trade balance. Policymakers are exploring solutions to address this issue.

Define the term current account deficit as indicated in bold (Text B, Paragraph 2).

Text C, Paragraph 2
Before implementing protectionist measures, Mexico had a trade deficit of $25 billion. After reducing imports by 10%, the new trade deficit stood at $20 billion.

Calculate the change in Mexico’s trade deficit as found in (Text C, Paragraph 2).

Text E, Paragraph 2
After adopting protectionist measures, the government of India reported an improvement in certain manufacturing sectors. However, economists are divided on whether these benefits will last.

State two effects of trade protection on employment as found in (Text E, Paragraph 2).

Text B, Paragraph 3
In Brazil, export subsidies led to the creation of new jobs in the agricultural sector, a 25% increase from the previous year. The total number of agricultural jobs last year was 200,000.

Calculate the total number of agricultural jobs in Brazil after the export subsidy as found in (Text B, Paragraph 3).

Text E, Paragraph 3
Economists in Canada have warned that the introduction of new protectionist policies could lead to resource misallocation, creating problems for domestic industries.

Define the term resource misallocation as indicated in bold (Text E, Paragraph 3).