Globalisation and trade restrictions
6.2What the syllabus asks of you
- Definition of globalisation
- Causes and consequences of changes in globalisation: causes of changes in globalisation: changes in trade restrictions; changes in transport costs; changes in communication costs; movement of multinational companies (MNCs)
- Causes and consequences of changes in globalisation: effects of changes in globalisation on: international trade; competition; the environment; migration; income distribution; economic development
- Role of multinational companies (MNCs): MNCs and their advantages and disadvantages to host countries and home countries
- Types of trade restrictions / methods of protection: tariffs
- Types of trade restrictions / methods of protection: import quotas
- Types of trade restrictions / methods of protection: subsidies
- Types of trade restrictions / methods of protection: embargoes continued
- Reasons for trade restrictions: protect infant (sunrise) industries
- Reasons for trade restrictions: protect declining (sunset) industries
- Reasons for trade restrictions: protect strategic industries
- Reasons for trade restrictions: avoid dumping
- Reasons for trade restrictions: reduce a deficit on the current account of the balance of payments
- Reasons for trade restrictions: raise tax revenue
- Reasons for trade restrictions: restrict the import of demerit goods
- Reasons for trade restrictions: promote environmental sustainability
- Consequences of trade restrictions: impact of trade restrictions on the home country and its trading partners
- Consequences of trade restrictions: advantages and disadvantages of restricting free trade
Read the notes first
Chapter 6: Globalisation and trade restrictions
Drill this topic
Every question on Globalisation and trade restrictions, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
57 questions
1May / June 2026 · Paper 11 · Q28Show mark scheme →
Aa decrease in foreign investment
Ba decrease in migration
Can increase in international trade
Dan increase in tariffs
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2May / June 2026 · Paper 12 · Q28Show mark scheme →
Agreater movement of labour
Blonger product supply chains
Cmore effective tariff barriers
Dwider use of technology
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3Oct / Nov 2025 · Paper 12 · Q17Show mark scheme →
Ato boost domestic output
Bto influence the country's balance of payments
Cto protect domestic employment
Dto reduce the exports from the country
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4Oct / Nov 2025 · Paper 12 · Q28Show mark scheme →
Aa fall in the rate of inflation
Ban increase in consumer choice
Can increase in domestic production
Dthe current account of the balance of payments moves into a deficit
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5May / June 2025 · Paper 11 · Q28Show mark scheme →
Aforeign firms exporting waste products
Bforeign firms producing goods at a lower cost than domestic firms
Cforeign firms selling goods that are out of fashion
Dforeign firms exporting products at a price below the cost of production
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6May / June 2025 · Paper 12 · Q28Show mark scheme →
Adeveloping courses for training in mining
Binvesting in infrastructure to export minerals
Crepatriating profits and dividends
Dusing new technology
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7Oct / Nov 2024 · Paper 12 · Q28Show mark scheme →
Aapply an embargo to this good
Bdevalue the currency
Cincrease interest rates
Dprovide subsidies to home producers of this good
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8Oct / Nov 2024 · Paper 13 · Q28Show mark scheme →
Aan embargo
Ban import quota
Can import tariff
Da subsidy
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9May / June 2024 · Paper 11 · Q28Show mark scheme →
Ato decrease the competitiveness of domestic firms
Bto decrease the demand for exported goods
Cto increase employment in domestic firms
Dto increase the supply of imported goods
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10May / June 2024 · Paper 12 · Q27Show mark scheme →
A
B
C
D
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11Oct / Nov 2023 · Paper 12 · Q28Show mark scheme →
Aavoid country X dumping steel in country Y
Bavoid country Y dumping steel in country X
Creduce inflation in country X
Dreduce inflation in country Y
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12May / June 2023 · Paper 11 · Q27Show mark scheme →
ACereals become less popular with the population of developing economies.
BDeveloped economies place an embargo on cereal imports to prevent disease.
CGovernments tax cereal production in developed economies.
DProducers of cereals in developing economies are subsidised.
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13May / June 2023 · Paper 11 · Q28Show mark scheme →
Aa decrease in the domestic output of cars
Ba decrease in the domestic price of cars
Can increase in the tax revenue from car imports
Dan increase in the total revenue of domestic car producers
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14May / June 2023 · Paper 12 · Q28Show mark scheme →
Aapply anti-dumping tariffs
Bincrease interest rates
Crevalue the currency
Dsubsidise the export of steel
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15Oct / Nov 2022 · Paper 12 · Q29Show mark scheme →
Adumping
Bquota
Csubsidy
Dtariff
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16Oct / Nov 2022 · Paper 12 · Q30Show mark scheme →
Ahigh economic growth rate and supply of cheap labour
Blow corporation tax and competitive local market
Climited supply of skilled workers and cheap land
Dstrict employment laws and high import duties
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17Oct / Nov 2022 · Paper 13 · Q29Show mark scheme →
Aconsumers of cars in country X
Bproducers of cars in country X
Cthe government of country X
Dworkers making cars in country X
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18Oct / Nov 2022 · Paper 13 · Q30Show mark scheme →
AIncreased competition from the MNC may force firms in the host country to close.
BMany jobs created by the MNC may be low-skilled.
CThe MNC’s profits from the host country may be sent to its home country.
DThe MNC may cause job losses in its home country by moving production abroad.
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19May / June 2022 · Paper 11 · Q4Show mark scheme →
Ayes / yes
Byes / no
Cno / yes
Dno / no
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20May / June 2022 · Paper 11 · Q15Show mark scheme →
Aa decrease in demand for domestic production
Ba decrease in domestic unemployment
Ca decrease in exports
Da decrease in the balance of trade deficit
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21May / June 2022 · Paper 11 · Q25Show mark scheme →
Aimproved balance of trade / training by the MNCs
Bhigher employment / loss of a finite resource
Cincreased profits for the MNCs / efficient production
Dmore sustainable development / economic growth
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22May / June 2022 · Paper 12 · Q28Show mark scheme →
Aa decrease in demand for domestic production
Ba decrease in domestic unemployment
Ca decrease in exports
Da decrease in the balance of trade deficit
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23May / June 2022 · Paper 12 · Q30Show mark scheme →
Aimproved balance of trade / training by the MNCs
Bhigher employment / loss of a finite resource
Cincreased profits for the MNCs / efficient production
Dmore sustainable development / economic growth
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24Oct / Nov 2021 · Paper 12 · Q29Show mark scheme →
Adecrease in inflation in the US
Bdecrease in trade between the US and Germany
Cincrease in profits of car and motorcycle producers from Germany
Dincrease in standards of living in the US and in Germany
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25Oct / Nov 2021 · Paper 13 · Q29Show mark scheme →
Ato reduce a deficit on the current account of the balance of payments
Bto reduce a surplus on the current account of the balance of payments
Cto reduce economic growth
Dto reduce inflation
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26May / June 2021 · Paper 11 · Q28Show mark scheme →
Aembargo
Bquota
Csubsidy
Dtariff
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27May / June 2021 · Paper 12 · Q2Show mark scheme →
Ahigh cost of clearing forests to increase land for plantations
Bincreased demand for palm oil
Cshortages of labour in the rural economy
Dthe removal of subsidies for palm oil production
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28May / June 2021 · Paper 12 · Q27Show mark scheme →
Amore choice for domestic consumers
Bmore employment in declining industries
Cmore exports by domestic firms
Dmore tax revenue from imports
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29May / June 2021 · Paper 12 · Q28Show mark scheme →
Acreation of a single world market
Bdirect foreign investment by multinational companies
Cexpansion of trade in financial services
Dprotectionist policies by trading groups
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30Oct / Nov 2020 · Paper 13 · Q28Show mark scheme →
Adecreasing labour supply
Bdecreasing transport costs
Cincreasing oil prices
Dincreasing trade barriers
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31Oct / Nov 2020 · Paper 13 · Q29Show mark scheme →
ALocal firms close because MNCs are more efficient.
BNew production techniques are introduced.
CThe balance of payments may improve.
DThe MNCs have to pay taxes on their profits.
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32May / June 2020 · Paper 11 · Q27Show mark scheme →
Aa government grant to encourage production
Ban administrative and technical barrier
Ca limit on the quantity of imports
Da tax on imports
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33May / June 2020 · Paper 12 · Q27Show mark scheme →
Aembargo
Bquota
Csubsidy
Dtariff
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34Oct / Nov 2019 · Paper 12 · Q28Show mark scheme →
AIt can lead to retaliation from trading partners.
BIt encourages infant industries to grow.
CIt increases demand for domestic manufactured goods.
DIt reduces outflows of currencies to pay for imports.
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35Oct / Nov 2019 · Paper 12 · Q30Show mark scheme →
Aa German bank making a loan to a Nigerian company
Ba Japanese car manufacturer establishing a factory in the Czech Republic
Cthe Canadian government introducing quotas on Malaysian electronics products
Dthe Swedish government granting aid to Somalia
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36Oct / Nov 2019 · Paper 13 · Q30Show mark scheme →
Aa German bank making a loan to a Nigerian company
Ba Japanese car manufacturer establishing a factory in the Czech Republic
Cthe Canadian government introducing quotas on Malaysian electronics products
Dthe Swedish government granting aid to Somalia
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37May / June 2019 · Paper 11 · Q27Show mark scheme →
AThe good will become cheaper in the US.
BThe US balance of trade will worsen.
CThe US government's revenue will decline.
DThere will be less of the good imported into the US.
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38May / June 2019 · Paper 11 · Q29Show mark scheme →
Athe anti-dumping argument
Bthe infant industry argument
Cthe strategic industry argument
Dthe sunset industry argument
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39May / June 2019 · Paper 12 · Q27Show mark scheme →
AThe good will become cheaper in the US.
BThe US balance of trade will worsen.
CThe US government's revenue will decline.
DThere will be less of the good imported into the US.
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40Oct / Nov 2018 · Paper 12 · Q30Show mark scheme →
Ato encourage imports of processed products into the EU
Bto encourage tropical countries' exports
Cto help manufacturing industries in the EU
Dto help tropical countries develop manufacturing industries
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41Oct / Nov 2018 · Paper 13 · Q27Show mark scheme →
Aban
Bembargo
Cquota
Dtariff
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42Oct / Nov 2018 · Paper 13 · Q30Show mark scheme →
Ato encourage imports of processed products into the EU
Bto encourage tropical countries' exports
Cto help manufacturing industries in the EU
Dto help tropical countries develop manufacturing industries
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43May / June 2018 · Paper 11 · Q26Show mark scheme →
Abuilding roads to assist transport
Bexporting mineral ore
Cproviding skills training
Dreturning profits overseas
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44May / June 2018 · Paper 11 · Q27Show mark scheme →
Aa higher quota on imported cars
Ba subsidy to domestic car producers
Can embargo on cars produced in other countries
Dhigher tariffs on imported goods
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45May / June 2018 · Paper 12 · Q26Show mark scheme →
Abuilding roads to assist transport
Bexporting mineral ore
Cproviding skills training
Dreturning profits overseas
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46May / June 2018 · Paper 12 · Q27Show mark scheme →
Aincrease the level of import quotas
Breduce import tariffs
Cremove exchange controls
Dsubsidise export producers
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47Oct / Nov 2017 · Paper 12 · Q13Show mark scheme →
AIt exports its products.
BIt imports its raw materials.
CIt produces outside its country of origin.
DIt promotes its products in trade fairs abroad.
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48Oct / Nov 2017 · Paper 12 · Q27Show mark scheme →
Aincreased choice
Bincreased government revenue
Cmore competition
Dmore trade
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49Oct / Nov 2017 · Paper 13 · Q13Show mark scheme →
AIn developing countries, clothing workers receive low wages.
BIn developing countries, foreign managers are allowed to pay no income tax.
CIn developing countries, multinationals are allowed to take profits out of the country.
DIn developing countries, there is a large market for fashion clothing.
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50Oct / Nov 2017 · Paper 13 · Q27Show mark scheme →
Aincreased choice
Bincreased government revenue
Cmore competition
Dmore trade
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51May / June 2017 · Paper 12 · Q29Show mark scheme →
Aexcess demand | fall | rise
Bexcess demand | rise | rise
Cexcess supply | fall | fall
Dexcess supply | rise | fall
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52Oct / Nov 2016 · Paper 12 · Q28Show mark scheme →
Acheaper wage costs in Europe
Bthe availability of raw materials
Cto gain external economies from skilled labour in Europe
Dto increase Japanese self-sufficiency
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53Oct / Nov 2016 · Paper 12 · Q29Show mark scheme →
Aa decrease in demand for domestic production
Ba decrease in domestic unemployment
Ca decrease in exports
Da decrease in the balance of trade deficit
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54Oct / Nov 2016 · Paper 13 · Q28Show mark scheme →
Acheaper wage costs in Europe
Bthe availability of raw materials
Cto gain external economies from skilled labour in Europe
Dto increase Japanese self-sufficiency
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55Oct / Nov 2016 · Paper 13 · Q29Show mark scheme →
Aa decrease in demand for domestic production
Ba decrease in domestic unemployment
Ca decrease in exports
Da decrease in the balance of trade deficit
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56May / June 2016 · Paper 11 · Q28Show mark scheme →
Aconservation of resources and taxes on external costs
Beliminating waste in the use of resources and grants to multinational companies
Cincreased self sufficiency and increased tariffs
Dprice controls and increased regulations on domestic monopoly industries
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57May / June 2016 · Paper 12 · Q28Show mark scheme →
Aconservation of resources and taxes on external costs
Beliminating waste in the use of resources and grants to multinational companies
Cincreased self sufficiency and increased tariffs
Dprice controls and increased regulations on domestic monopoly industries
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