A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2010 · Q301 Mark

In 2008 the Chinese government was under pressure from other countries to reduce its current account surplus on its balance of payments. Which combination of Chinese measures would help to reduce China's current account surplus?

AChinese rate of tariffs: decrease; Chinese subsidies to the country's exporters: decrease

BChinese rate of tariffs: decrease; Chinese subsidies to the country's exporters: increase

CChinese rate of tariffs: increase; Chinese subsidies to the country's exporters: decrease

DChinese rate of tariffs: increase; Chinese subsidies to the country's exporters: increase

✓ Correct answer

A: Chinese rate of tariffs: decrease; Chinese subsidies to the country's exporters: decrease

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2010 Paper 1 Variant 2, question 30.

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