Economics 9708/23 — May/June 2018
Cambridge AS Level · AS Level Data Response and Essays · worked solutions for every part, with the mark scheme
Topics Fiscal Policy · Methods of Government Intervention in Markets · Balance of Payments · International Trade and Comparative Advantage · Protectionism · Factors of Production · +4 more
The Trans-Pacific Partnership (TPP) – good or bad?
In February 2016, the controversial TPP trade deal was finally signed at a ceremony in Auckland, New Zealand.
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Imports are mainly vehicle parts, mechanical equipment, petroleum products and a wide range of other non-food items.
Source: New York Times, 2 February 2016
Table 1.1: New Zealand’s total trade in goods, with selected TPP partners and China in NZ$(m), year ended June 2015
| Exports to | Imports from | |
|---|---|---|
| Australia | 8514 | 6285 |
| US | 5483 | 6081 |
| Japan | 2943 | 3413 |
| Singapore | 1078 | 1801 |
| Malaysia | 982 | 1877 |
| Canada | 597 | 598 |
| China | 8267 | 9332 |
| All other countries | 20 532 | 19 438 |
| Total trade in goods | 48 396 | 48 825 |
Source: Global New Zealand – Investment and Travel Profile, 2015
Use Table 1.1 to help you to answer parts (i), (ii) and (iii).
With which TPP member did New Zealand have the largest deficit on its trade in goods in the year ended June 2015? Explain your answer.
New Zealand’s balance of trade in goods plus its services balance was estimated at NZ$2400m for the year ended June 2015. Calculate New Zealand’s services balance.
What two other items are needed to calculate New Zealand’s current account balance?
Use the principle of comparative advantage to explain why New Zealand is likely to benefit from membership of the TPP.
Explain the likely effects of the removal of protection on the incomes of Canada’s farmers.
Discuss whether China joining the TPP would be likely to be of overall benefit to existing TPP members.
The rest of this paper
3 more questions- Q2Fiscal Policy · Methods of Government Intervention in Markets20M
- Q3Factors of Production · Demand and Supply · Market Equilibrium and the Price Mechanism · Methods of Government Intervention in Markets20M
- Q4Price Stability · Monetary Policy · Fiscal Policy20M