Economics · 2015 · November · Paper 2 · SL · Question paper

N15/3/ECONO/SP2/ENG/TZ0/XX Economics Standard level Paper 2 © International Baccalaureate Organization 2015 9 pages Instructions to candidates yy Do not open this examination paper until instructed to do so. yy You are not permitted access to any calculator for this paper. yy Section A: answer one question. yy Section B: answer one question. yy Use fully labelled diagrams and references to the text/data where appropriate. yy The maximum mark for this examination paper is [40 marks]. 1 hour 30 minutes Wednesday 4 November 2015 (morning) 8815 – 5113 – 2 – Section A Answer one question from this section. 1. Study the extract below and answer the questions that follow. Clean energy products  In a speech on climate change, President Obama announced a plan for the United States (US) to work with trading partners and the World Trade Organization (WTO) towards global free trade in clean energy products, such as solar panels and wind towers.  The US will build on the Asia-Pacific Economic Cooperation (APEC)* agreement where member economies agreed to remove quotas and reduce tariffs to 5 % or less by 2015 on a negotiated list of 54 clean energy products.  However, the APEC agreement does not include reducing anti-dumping tariffs. Such tariffs are allowed under WTO rules. When importers are suspected of dumping clean energy products on the domestic market, industries seek protection by putting pressure on government to impose anti-dumping tariffs.  In recent years, anti-dumping tariffs on clean energy products have increased. In 2011 China was found to be subsidizing and dumping wind towers on the US market. In retaliation, the US imposed an anti-dumping tariff of between 45 % and 71 %. In addition, a similar tariff was imposed on Vietnamese wind tower imports.  In the solar industry in 2012, a group of seven US solar panel manufacturers sought protection from cheap Chinese imports. After investigating claims of dumping, the US imposed anti-dumping tariffs ranging from 24 % to 36 % on Chinese solar panel producers.  The Coalition for Affordable Solar Energy (CASE), which represents importers, installers and solar power generators, supports the