The UK removes a 12% tariff on imported clothing under a new free-trade agreement. Table 1 shows forecasts for the UK clothing market.
| Measure | Before tariff removal | Forecast after removal |
|---|---|---|
| Average clothing price | £42 | £37 |
| UK clothing output | £6.4 billion | £5.6 billion |
| UK clothing exports | £3.8 billion | £4.5 billion |
| UK clothing imports | £7.2 billion | £9.1 billion |
| UK clothing-production jobs | 92,000 | 76,000 |
| Annual tariff revenue | £430 million | £0 |
Using Table 1, assess whether removing the tariff is likely to benefit the UK economy.
48 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.