Readers Question: what are the possible consequences/effects of protectionism with regard to the UK and the rest of the world? Protectionism occurs when countries place restrictions on imports into the economy. This can involve higher tariffs (a type of tax on imports) or quotas and embargoes. Other forms of protectionism can be less obvious, such …
Trade Sanctions are laws passed to restrict or abolish trade with certain countries. Trade Sanctions can take various forms such as: Complete embargo on specific types of trade. Tariff Barriers. Higher taxes on imports of goods. If the tariffs are sufficiently high, it may stop imports completely. Quotas limiting the amount of trade Trade Sanctions …
The Common Agricultural Policy (CAP) was designed to give farmers a guaranteed income and also to guarantee food supplies. This was achieved with minimum prices and import tariffs. However, the system of target prices. led to various economic problems. CAP CAP led to massive oversupply (Q4-Q1) Problems of CAP included High prices for consumers Incentives …
Dumping refers to the situation when a country sells exports very cheaply to another country. For example, the European Union had a large surplus of food items, due to the Common Agricultural Policy. These goods were then sold very cheaply – ‘dumped’ on other world markets. This causes big problems for farmers in these countries …
Example of a AQA unit 4 question from June 2007. AQA paper available here Note: Some of the data can’t be published online. This is just a short guide to answer the question. I think it lacks – more use of data and more evaluation. Explain why Free Trade is important to EU member countries …