Questions:

Q1 a)Define quota: An import quota is a type of trade restriction that sets a physical limit on
the quantity of a good that can be imported into a country in a given period of time.

b) List 2 reasons why the government might wish to protect the domestic poultry
industry.

Ans) 1. The poultry industry makes up 60% of the agriculture sector in Trinidad and Tobago
and generates over 10,000 jobs and 1 billion in revenue.

2. Also so that there is not an international monopoly on the Chicken industry of trinidad and
Tobago. 

Q2. Using an appropriate diagram show the likely effect that the suggested increase
in the tariff (paragraph 3) would have on domestic production of poultry. { 4 marks}

Ans) 
Q3. Using AD/AS diagram, suggest what will happen to employment if imports
continue to damage the  domestic production of poultry.{4marks}

Q4. Using information from the text/data and your knowledge of economics, discuss
the argument for and against the protection of the domestic poultry market. {8 marks}

Ans) Protectionism refers to government policies that restrict international trade to help
domestic industries. A tariff is a tax on imports or exports between sovereign states. It is a
form of regulation of foreign trade and a policy that taxes foreign products to encourage or
safeguard domestic industry.

As mentioned in paragraph 9 the poultry sector makes up 60% of the agriculture sector in
Trinidad and Tobago can generate over 10,000  jobs and 1 billion in revenue. This shows
how important the chicken sector for Trinidad and Tobago is and how due to the imported
chicken this has taken a huge hit. Chicken being such a big source of income for the country
it is important the country try to take some measure to protect such a lucrative industry for
them. 
Furthermore, as the supply of the imported chicken increases this might lead to a control of
the chicken industry of Trinidad and Tobago to other countries which might try to leverage
this as chicken is a very important source of protein.  Also I believe that Trinidad and Tobago
put tariffs on the imported chicken as mentioned in paragraph 3 where other Caribbean
countries have very high tariffs on imported chicken in comparison to Trinidad and Tobago.
Also the revenue earned by the government from the tariff on the imported chicken could be
a very important source of income for such a small country like Trinidad and Tobago. The
revenue received from the tariff could be used to give subsidies to domestic producers in
order to help them. This would be good for the producers as they will now have less
competition. This would also be good for the government as they will now have a new
source of income. This would also be beneficial for the society as 

Putting a tariff on the imported chicken could easily backfire as the countries from where the
chicken was being imported could easily put retaliatory tariffs on other goods which they
were importing from Trinidad and Tobago. This would also not be beneficial for the
consumers as now the price of chicken will be higher which will lead to a decrease in the
consumption of a very important part of people’s meal as chicken is rich in protein. This
might lead to malnutrition of the people of Trinidad and Tobago and they will now eat less
chicken.