O-LevelEconomicsInternational trade and globalisation2281/11 · May/June 2015 · Q291 Mark
Skin creams preventing sunburn made in the European Union (EU) are more effective than those made in the United States (US). US tourists stock up on the creams when visiting Europe. Such creams are banned from production in the US because of the chemicals in them. In 2013, negotiations began to remove this ban in order to allow production in the US. How is this freer trade likely to affect manufacturers of skin creams in the US and the EU?
Amanufacturers in the US: gain, manufacturers in the EU: gain
Bmanufacturers in the US: gain, manufacturers in the EU: lose
Cmanufacturers in the US: lose, manufacturers in the EU: gain
Dmanufacturers in the US: lose, manufacturers in the EU: lose
✓ Correct answer
B: manufacturers in the US: gain, manufacturers in the EU: lose
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill International trade and globalisation and see which topics are most likely to come up next.
Sign up free →