Section B Answer one question. (a) Explain, using examples, what is meant by ‘protectionism' and show with the help of a diagram how export subsidies can be considered as a form of protectionism. (b) Discuss the arguments that are used to justify protectionism and consider whether these arguments can ever be justified.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. [8] Knowledge and understanding: ∞ Protectionism is adopting policies to assist domestic industries facing competition from foreign industries 1 mark ∞ through interference with market forces or the relative prices of imports and exports. 1 mark (KU: up to 2 marks) Application: One example of a method of protectionism other than an export subsidy e.g. a tariff or a quota (1 mark) and explaining how this could be considered a method of protectionism (1 mark) For explaining why export subsidies can be considered as a method of protectionism: For an accurate diagram showing the impact of the export subsidy on costs and the price of exports (Up to 3 marks) and explaining how this could be considered a method of protectionism (1 mark) (APP: up to 6 marks)
2. [12] Analysis: Considering any argument in favour of protectionism with a consideration of whether it can be justified with due reference to economic theory. Up to 4 marks per justification (AN: up to 8 marks) Evaluation: Summarises the arguments in favour of protectionism and considers whether this can be justified when compared to the benefits of free trade. Up to 3 marks plus 1 mark for a reasoned conclusion (EV: up to 4 marks)