A country currently taxes imported washing machines and limits the quantity that may be imported. The government is considering removing both restrictions.
Table 1 shows estimates for the washing-machine market.
| Market measure | With the current trade barriers | After the trade barriers are removed |
|---|---|---|
| Average retail price per washing machine | £480 | £410 |
| Number of different washing-machine models available | 22 | 38 |
Using the data in Table 1, explain two arguments in favour of removing the trade barriers.
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.