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IGCSE Economics2.2.2 International tradeTopic Practice

2.2.2 International trade

Edexcel IGCSE Economics 2.2.2 International trade question practice helps you revise this syllabus point with the course map in view. Use this page to focus on one topic, check the style of questions available, and connect each attempt back to the knowledge area it is testing.

EduNinja keeps Economics practice aligned to Edexcel, so you can move from topic review into exam-style question bank work without losing the syllabus structure. Start with a small set, mark the weak steps, then return to nearby topic links when a definition, graph, calculation, or explanation needs repair.

Question 1

Question 1(f)

(a)

Using the diagram below, draw the effects of the introduction of a quota on the equilibrium price and quantity of a good.
Label the new curve, the new equilibrium price and new equilibrium quantity.

Figure 1

Figure 1

[ 3 ]

Question 1(g)

(b)

In 2017 the US government wanted to introduce a 300% tariff on imported aircraft made by Canadian manufacturer Bombardier.

Explain one way the World Trade Organisation could promote free trade between countries such as Canada and the US.

[ 3 ]

Question 1(b)

[Maximum number: 1]

A trade bloc is a group of countries that have

A

the same interest rate

B

common borders between members

C

the same currency

D

a reduction in trade barriers between members

Question 1

Question 1(b)

(a)

Which one of the following terms refers to a tax on imported goods?

A

Subsidy

B

Tariff

C

Fine

D

Pollution permit

[ 1 ]

Question 1(d)

(b)

What is meant by the term dumping?
Figure 1 shows the government revenue and expenditure in rupees crore for India in 2019-2020.

Figure 1

Figure 1

[ 2 ]

Question 1

Question 1(a)

(a)

Which one of the following terms refers to a physical limit on the quantity of imported products allowed into a country?

A

Devaluation

B

Dumping

C

Public good

D

Quota

[ 1 ]

Question 1(d)

(b)

What is meant by the term infant industries?
In August 2019 Inter Milan, an Italian football club, paid £73 m£ 73 \mathrm{~m} to Manchester United for the transfer of footballer Romelu Lukaku. The exchange rate was £ 1=€ 1.08.

[ 2 ]

Question 1(f)

(c)

In December 2019, the USA imposed a 10% tariff on toys imported from China.

Using the diagram below, draw the likely effect of the introduction of this tariff on the equilibrium price and quantity of toys imported from China. Label the new curve, the new equilibrium price and new equilibrium quantity.

Figure 1

Figure 1

Economic growth in Malaysia increased to 4.9\% between April and June 2019.

[ 3 ]

Question 1(f)

[Maximum number: 3]

In December 2019, the UK and the European Union (EU) negotiated North Sea fishing quotas for 2020. It was agreed to increase the fishing quota for haddock by 30%.

Using the diagram below, draw the effects of the introduction of the new quota on the equilibrium price and quantity of haddock. Label the new curve, the new equilibrium price and new equilibrium quantity.

Figure 2

Figure 2

Question 1

Question 1(a)

(a)

Which one of the following is a role of the World Trade Organization (WTO)?

A

Writing off debts

B

Settling trade disputes

C

Increasing trade barriers

D

Paying subsidies to producers

[ 1 ]

Question 1(d)

(b)

Describe one advantage of free trade for consumers.

[ 2 ]

Question 1(f)

(c)

In May 2020, China introduced a tariff of 80\% on Australian barley.

Using the diagram below, draw the effects of the introduction of a tariff on the equilibrium price and quantity of Australian barley. Label the new curve, the new equilibrium price and new equilibrium quantity.

Figure 2

Figure 2

[ 3 ]

Question 1(f)

[Maximum number: 3]

In December 2020, the European Union (EU) decreased the 8\% import tariff on lobsters from the US.

Using the diagram below, draw the effects of the decrease in the tariff on the equilibrium price and quantity of US lobster imports into the EU. Label the new curve, the new equilibrium price and new equilibrium quantity.

Figure 1

Figure 1

Question 1

Question 1(d)

(a)

Describe one role of the World Trade Organization (WTO).

[ 2 ]

Question 1(f)

(b)

In January 2023, China introduced a tariff on imports of large tyres.

Using the diagram below, draw the effects of the introduction of the tariff on the equilibrium price and quantity of large tyres. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Figure 1

Figure 1

[ 3 ]

Question 1(g)

(c)

In January 2023, China and Ecuador announced they would be signing a free trade agreement after a year of negotiations. The deal is expected to boost Ecuador's exports of shrimp, bananas, flowers, cocoa and coffee to China.

Explain one advantage of free trade for businesses in Ecuador.

[ 3 ]

Question 1(h)

[Maximum number: 6]

In March 2023, the UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an 11-member Asia-Pacific trading bloc, after two years of negotiations. The current members of the CPTPP are Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Malaysia, Peru and Vietnam.

With reference to the data above and your knowledge of economics, analyse the advantages for UK firms of the UK joining the CPTPP trading bloc.

Question 1

Question 1(f)

(a)

In January 2023, China introduced a quota on imports of crude oil into the country.

Using the diagram below, draw the effects of the introduction of the quota on the equilibrium price and quantity of crude oil in China. Label the new curve, the new equilibrium price and the new equilibrium quantity.

Figure 2

Figure 2

[ 3 ]

Question 1(h)

(b)

The African Continental Free Trade Area (AfCFTA) is a free trade area that includes most of Africa. It connects 1.3bn people across 55 countries with a combined gross domestic product (GDP) of $ 3.4 trillion. South Africa is an important member of the AfCFTA.

With reference to the data above and your knowledge of economics, analyse the disadvantages to firms in South Africa of being a member of the AfCFTA.

[ 6 ]
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