Business Studies · May / June 2020 · Paper 12 · Question 1

DWT makes solar panels in country Y. This is a low-cost country which is experiencing rapid economic growth. DWT’s production method makes use of specialisation. All 120 of DWT’s employees know that ensuring quality production is important. DWT imports some of its raw materials. The Government of country Y plans to introduce import tariffs of 50%. DWT’s Managing Director said: ‘This decision will affect all of our stakeholders. Why do governments introduce trade restrictions such as import controls?’

Read automatically from the paper; the printed page above is exact.