The government of country W is concerned about the level of imports. Local pressure groups have been asking for import restrictions to be introduced. Other groups want the exchange rate of country W to fall (depreciate). The 'structure' of an economy refers to the relative importance of the Primary, secondary and tertiary sectors.
- (a)Identify two methods that could be used to restrict imports into country W.[2]
- (b)What is meant by 'an exchange rate fall'?[2]
- (c)Identify and explain two reasons why consumers might be disadvantaged by the introduction of import restrictions.[4]
- (d)Identify three major changes that have occurred in the structure of your country's economy in recent years and explain why these changes have happened.[6]
- (e)Do you think that a fall in the exchange rate of country W will help businesses in that country? Justify your answer.[6]
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