Belvar's government stops charging a tariff on imported sawn timber. Furniture manufacturers in Belvar use timber to produce wooden dining tables.
| Measure | Before the tariff was removed | After the tariff was removed |
|---|---|---|
| Price of imported sawn timber | £400 per cubic metre | £340 per cubic metre |
| Average retail price of a wooden dining table | £520 | £490 |
| Employment in Belvar's domestic sawmills | 3,200 workers | 2,880 workers |
Using the information in the table, explain how removing the tariff could have affected furniture consumers and workers in Belvar's domestic sawmills.
118 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.