IGCSE/ A-Level Revision Questions

Here's a table outlining the potential advantages and disadvantages for a business that imports raw materials under import tariffs and quotas:

Policy	Advantages	Disadvantages
Import Tariff	Potentially lower cost of raw materials (if tariff is low). Protection from price fluctuations in the international market.	Increased cost of raw materials (if tariff is high). Reduced competitiveness compared to domestic producers. Potential for retaliation from exporting countries.
Import Quota	Guaranteed access to a certain quantity of raw materials. Potentially more stable supply chain.	Higher cost of raw materials (due to limited supply). Potential for shortages if quota is too low. Dependence on the quota-granting country.

The specific advantages and disadvantages will depend on the level of the tariff or quota, the availability of alternative suppliers, and the business's overall strategy.

Business Studies – 6.2.1 The importance of globalisation | e-Consult

6.2.1 The importance of globalisation (1 questions)