top of page

Reasons for Government Import Reduction


Explain two reasons why a government may want to reduce imports.


International Trade and Exchange Rates

CIE IGCSE/O Level October/November 2022 -

Preview Answer

Title⬅: Reasons for a Government to Reduce Imports

Introduce the topic of reducing imports and its significance for governments. Provide a brief overview of the reasons to be discussed in the essay.


Improve the Current Account of the Balance of Payments⬅:
Explain the concept of the current account deficit and its impact on the overall balance of payments.
Discuss how reducing imports can contribute to a balanced or surplus current account.
Explain the relationship between imports, exports, and the net exports component of the current account.
Highlight the benefits of an improved balance of payments, such as economic stability and financial strength.

Promote Domestic Industries and Economic Growth⬅:
Explain the rationale behind protecting domestic industries and promoting domestic production.
Discuss how reducing imports can shift demand towards domestically produced goods.
Explain the role of domestic industries in employment creation, GDP growth, and raising living standards.
Highlight the importance of supporting infant industries and fostering competitiveness.

Additional Reasons (Optional)⬅:

Prevent Dumping⬅:
Define dumping and explain its impact on domestic industries.
Discuss how import restrictions can protect domestic industries from unfair competition.
Explain the importance of maintaining a level playing field for domestic producers.

Increase Economic Independence⬅:
Discuss the benefits of reducing dependence on foreign suppliers for essential goods and resources.
Explain how promoting domestic production can enhance economic independence.
Highlight the significance of self-sufficiency in mitigating supply disruptions and price fluctuations.

Exchange Rate Stability⬅:
Explain the relationship between imports, currency exchange, and exchange rate fluctuations.
Discuss how reducing imports can help stabilize the exchange rate.
Highlight the importance of exchange rate stability for economic planning and trade competitiveness.

Summarize the main points discussed in the essay, emphasizing the two primary reasons for reducing imports.
Reiterate the benefits of reducing imports, including improved balance of payments and support for domestic industries.
Highlight the overall goal of strengthening the domestic economy, creating employment opportunities, and enhancing economic stability and independence.

Remember to provide evidence, examples, or data to support your points and ensure a logical flow between paragraphs. Good luck with your essay!

Ops... End of preview!

Already purchased Economics Study Pack subscription? Amazing! Click below

What's included 
✔️Full essay
✔️Marking Schemes
✔️Examiner's report

Economics Study Help
bottom of page