Text B, Paragraph 1
A major debate has arisen in Latin America over dumping, with local manufacturers accusing foreign firms of engaging in practices that harm domestic businesses. Governments are considering responses to these claims.
Define the term dumping as indicated in bold (Text B, Paragraph 1).
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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).
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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).
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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).
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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).
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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).
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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).
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Extract B, Paragraph 2
Ghana's textile industry faces intense competition from Asian imports, while its developing automotive sector struggles to establish itself. The government is considering protective measures for both industries. The textile sector employs 100,000 workers but has seen employment fall 30% over five years. Meanwhile, domestic vehicle manufacturers argue they need temporary protection to achieve international competitiveness.
Explain two arguments supporting trade protection for Ghana's industries.
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Extract C, Paragraph 1
Brazil's steel producers face competition from Chinese firms selling below production cost, while domestic firms maintain higher environmental standards. Local producers argue Chinese companies benefit from state subsidies and lax environmental regulations, making competition unfair. Brazilian steelworker unions report 20,000 job losses in regions with few alternative employment opportunities.
Explain two reasons why Brazil might protect its steel industry from Chinese competition.
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Extract A, Paragraph 3
Malaysia's protected automotive sector faces many problems relating to costs, innovation, and export competitiveness. Consumer groups argue protection has led to price and choice issues, while downstream industries report a change in production costs. Several trading partners have implemented retaliatory measures against Malaysian exports.
Explain two arguments against Malaysia's automotive trade protection.
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