A new container port opens in an overseas manufacturing region, reducing the cost of transporting household appliances to the UK. Table 1 shows changes in the UK appliance market.
| Measure | Before the port opened | After the port opened |
|---|---|---|
| Shipping cost per container | £4,800 | £2,700 |
| Cost per imported appliance, including transport to the UK | £250 | £220 |
| Annual appliance imports | 2.2 million | 2.9 million |
| Annual sales of UK-made appliances | 1.1 million | 0.8 million |
| Average UK retail price | £405 | £360 |
| Imports supplied by this region | 62% | 70% |
Using Table 1, analyse the consequences for UK appliance manufacturers and consumers of improved transport links with the overseas region.
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.