The use of supply-side policy measures, including deregulation, is moving China closer to a

market economic system. Some supply-side policy measures, such as education and subsidies,

can also increase a country's economic growth rate. China joined the World Trade Organization

in 2001 and has since removed some quotas on imports and reduced some import tariffs. These

measures may influence the size of its current account surplus.

q)Discuss whether or not a reduction in a country's trade protection will reduce its current

account surplus. [8]