DWT makes solar panels in country Y. This is a low-cost country which is experiencing rapid economic growth. DWT's production method makes use of specialisation. All 120 of DWT's employees know that ensuring quality production is important. DWT imports some of its raw materials. The Government of country Y plans to introduce import tariffs of 50%. DWT's Managing Director said: 'This decision will affect all of our stakeholders. Why do governments introduce trade restrictions such as import controls?'

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [2] Way in which work is divided so each worker concentrates on a specific task so become expert at it
2. [2] When people and businesses concentrate on what they are best at
3. [1] Partial definition e.g. workers do only one job
4. [1] Protect jobs from cheap labour in other countries
5. [1] To improve trade deficit
6. [1] Protect newly started/infant industries
7. [1] To earn more revenue from tariffs
8. [1] Protect local businesses from low priced competition
9. [1] Protect important national or strategic industries
10. [2] Quality control [k] so check products before they are exported [app]
11. [2] Quality assurance [k] when making solar panels [app]
12. [2] Training/recruit skilled employees [k] to make full use of specialisation [app]
13. [2] Use better quality materials [k] which could afford to pay for as it is a low-cost country [app]
14. [2] Use new technology/CAM/CAD [k]
15. [1] Customers would want high quality products [k]
16. [1] to achieve value for money [an]
17. [1] which is why quality production is important [app]
18. [1] Customers may want affordable prices [k]
19. [1] Pressure groups encourage the use of sustainable methods [k]
20. [1] such as solar panels [app]
21. [1] to protect the environment [an]
22. [1] Pressure groups reduce/limit amount of pollution/environmental damage[k]
23. [1] Economic growth increases consumer incomes [k]
24. [1] which increases demand for most goods [an]
25. [1] Rapid economic growth can lead to higher rate of inflation [k]
26. [1] which raises firms' costs/reduces profit margin [an]
27. [1] Patterns of consumer demand might change [k]
28. [1] reducing revenue for some businesses [an]
29. [1] Could lead to shortage of skilled workers [k]
30. [1] so have to offer pay to attract/retain employees leading to higher costs [an]
31. [2] No - unlikely all businesses will benefit as it depends on what they sell as if they sell basic goods, customers may switch to more expensive items as their incomes increase leading to fewer sales for some businesses and higher sales for others. [eval] [eval]