Solve these questions:
1)M/J 2009 P-2 Q-7
Countries sometimes establish agreements with
each other to encourage free trade by abolishing
tariffs or quotas on trade between them.
(a) Distinguish between a tariff and a
quota. [4]
(b) Analyse
the possible link between the level of tariffs and international
specialisation. [4]
(c)
Analyse the
advantages of trading without tariffs and quotas. [6]
2)M/J 2008 P-4 Q-6
(a) Explain
what is meant by specialisation and in what circumstances it might occur. [5]
(b) Some
countries use measures to protect home industries. Describe how three of
these
measures work. [6]
(c) Explain,
with the use of one example, what is meant by a natural resource of
a country. [3]
(d) For
many countries international trade involves using their natural resources to
sell to other
Countries.Discuss whether it is wise for a
country to use (exploit) its natural resources rather
than
conserve them. [6]
