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A Level Economics (9708)•9708/12/O/N/24
Question 28 from 9708/12/O/N/24

Explanation

Distinguishing protectionism from general taxes

Steps:

  • Define protectionism as government policies restricting imports to shield domestic industries, like tariffs, quotas, or barriers.
  • Review choices: A uses standards to limit foreign goods; B raises a broad tax on select imports; C prohibits imports outright; D adds a specific import duty.
  • Compare to definition: Options A, C, D directly hinder foreign competition; B applies a neutral consumption tax.
  • Conclude B lacks intent to protect domestic producers via trade barriers.

Why B is correct:

  • GST is a value-added tax on consumption, applied domestically and to imports without discriminatory trade restriction, per WTO rules on national treatment.

Why the others are wrong:

  • A: EU safety standards function as non-tariff barriers, blocking non-compliant imports to favor local producers.
  • C: Banning sugar imports is a zero-quota policy, directly protecting domestic agriculture.
  • D: 35% tariff on Chinese tires is a classic import duty to reduce foreign competition.

Final answer: B

Topic: Protectionism

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