IB diploma Economics SL International IA

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본 문서는 IB diploma May 2018년에 작성된 International economics 의 IA 입니다. micro, macro 에 더불에 international 까지 모두 만점을 받은 만큼 잘 참고하시면 econ 점수에 도움이 되실 겁니다.
제가 선택한 article 제목은 Industry, farmers react as India targets pea imports 이며, 핵심 내용은 tariff on imported goods 입니다.

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Considering India’s “dual challenge of trying to provide […] price support to Indian farmers and ensure […] affordable nutrition for over 1 billion people”, an alternative solution would be to provide domestic production subsidies, an amount of money paid by the government to firms as a form of protection against imports. With subsidies, the supply curve shifts rightwards, increasing the quantity of domestic peas supplied from Q1 to Q3. Thus, the quantity of imports falls from Q2-Q1 to Q2-Q3. The subsidy not only supports Indian farmers by reducing quantity of imports but also provides an affordable price for domestic consumers, as the price remains at the world price, Pw, rather than rising to Ps.

On balance, although tariff is beneficial to domestic producers, other stakeholders such as domestic consumers face increased price levels, which become a burden to their households. Production inefficiency was also a negative influence:

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