Question 1 (a) Discuss and compare the effects of import quota with import tariffs with a diagram. Do you agree that import quota is more effective than import tariffs?

(b) With a real-world example, discuss what is the infant-industry argument for protection by some developing countries, and how the argument can be justified. In addition, discuss the counterarguments against infant-industry protectionism.

(c) Examine what is import substitution strategy and export-oriented strategy. Should a small developing economy implement import substitution strategy or export-oriented strategy in the pursuit of economic growth and industrialisation?