2019年5月IB经济SL真题下载-Paper2
1. Study the following extract and answer the questions that follow.
United States (US) tin can manufacturers seek tariff exemption on tinplate steel
(1)The Can Manufacturers Institute (CMI) has asked the US Department of Commerce to take away tariffs and other trade protection measures that are currently applied to imports of tinplate steel. Tinplate steel is used to make tin cans as packaging for food.
(2)The CMI represents the tin can manufacturing industry and its suppliers in the US. The tin can manufacturing industry accounts for the annual domestic production of approximately 124 billion tin cans. The industry employs more than 28 000 people, with factories in 33 US states, Puerto Rico and American Samoa. It generates revenue of around US$17.8 billion. The CMI claims that the tariff on imports of tinplate steel has a severe economic impact on the tin can manufacturing industry.
(3)Approximately 2 % of all US steel is tinplate. Currently, there is excess demand that is causing a disequilibrium in the domestic US tinplate steel market. In 2016, US demand for tinplate steel was 2.1 million tons, while domestic supply was 1.2 million tons, meaning that only 57 % of domestic demand was met by US tinplate steel producers. Not only is there a domestic shortage of tinplate steel, but also the CMI claims that there has been a noticeable decline in the quality of domestically-produced tinplate steel.
(4)The CMI claims that even a small increase in the price of raw materials could create a competitive disadvantage, forcing some tin can manufacturing plants to shut down. This would create structural unemployment for 10 000 workers in regionally-based factories. The CMI also claims that the tariff puts food can producers at a competitive disadvantage with other food packaging substitutes, such as plastic and glass. These substitutes are not subject to tariffs.
(5)According to the CMI, canned fruits and vegetables cost 20 % less than fresh food. Because of this, people on low incomes consume canned foods at a higher rate than the average American. Canned food offers a low-cost solution to feeding the nation; especially the 42 million Americans who live in low-income households. The figure includes 13 million children. The CMI further claims that tariffs, or any trade barriers, have harsh consequences for those living in relative poverty.
(a) (i) Define the term excess demand indicated in bold in the text (paragraph (3)).
(ii) Define the term structural unemployment indicated in bold in the text (paragraph (4)).
(b) Using a supply and demand diagram and data from the text, explain how a“disequilibrium in the domestic US tinplate steel market” would occur if there were no imports (paragraph (3)).
(c) Using an international trade diagram, explain the effect of a tariff on the imports of tinplate steel (paragraph (1)).
(d) Using information from the text/data and your knowledge of economics, discuss possible economic impacts of the tariff on tinplate steel.
2019年5月IB经济SL真题余下省略！
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