Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 2 [25 marks] The following table shows data on the UK's trade balance in the first half of 2019 and the first half of

image text in transcribed

image text in transcribed
Question 2 [25 marks] The following table shows data on the UK's trade balance in the first half of 2019 and the first half of 2020. The United States (US), China, Germany, the Netherlands, and France are the UK's top five trading partners. A Comprehensive Economic Partnership Agreement has been made with Japan, and Free Trade Agreement negotiations are currently underway with the US, New Zealand and Australia. Trade agreement negotiations are also still ongoing between the UK and the EU. Table 1 - UK trade balance ({ million) First half of 2019 First half of 2020 Trade Partner Goods Services Total trade Goods Services Total trade balance balance balance balance balance balance United States 7114.2 19186.0 26300.2 3738.3 19505.0 23243.3 China 13607.8 1399.0 -12208.8 -13670.9 1843.0 -11827.9 Germany 15253.4 978.0 -14275.4 -9208.1 3560.0 5648.1 Netherlands -9013.5 4208.0 -4805.5 -7040.0 5150.0 -1890.0 France -3352.3 3634.0 281.8 -1631.6 1503.0 -128.6 Japan -1184.8 1197.0 12.2 770.5 927.0 156.6 Australia 1230.9 2406.0 3636.9 1122.8 1975.0 3097.8 New Zealand -11.5 207.0 195.5 -76.1 229.0 152.9 Note: Positive numbers (+) represent UK's trade surplus; negative numbers (-) represent trade deficits. Source: Office for National Statistics - UK trade statistics 2.1 Using relevant theory and your own knowledge, explain the UK's trade patterns observed in the table above. (12 marks) 2.2 Since the start of the COVID-19 pandemic, the UK has suspended import tariffs on medical supplies (including face masks, gloves and other protective equipment). Discuss the economic consequences of this trade policy (i.e., suspending tariffs) on the UK economy. (13 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty

1st Edition

ISBN: 978-0132109994, 0132109999

More Books

Students also viewed these Economics questions

Question

Behaviour: What am I doing?

Answered: 1 week ago