Lesson 2.1.3b

2.1.3b Barriers to international trade: tariffs and trade blocs Quiz: Pearson Edexcel Business, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 2.1.3b, Barriers to international trade: tariffs and trade blocs: 20 multiple choice questions for the Pearson Edexcel GCSE Business (1BS0), Unit 6: Growing the business, written with Revision Ninja.

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The 20 questions

  1. A tariff is:

    • a fee paid to join a trade bloc
    • a tax placed on imported goods
    • a limit on the number of staff a firm may hire
    • a subsidy paid to exporters

  2. What is the main effect of a tariff on imported goods?

    • It makes exports cheaper for overseas buyers
    • It raises the price of the imported goods
    • It lowers the price of the imported goods
    • It removes all competition for domestic firms

  3. A trade bloc is:

    • a published list of goods that are banned from being imported
    • a group of countries agreeing to trade more easily together
    • a single shop owned by several separate retail firms together
    • a group of banks that agree to lend money to one business

  4. Which is an example of a trade bloc?

    • The United Nations Security Council
    • The International Monetary Fund
    • The World Health Organization
    • The European Union

  5. Why might a government impose a tariff?

    • To remove all taxes that fall on its own domestic firms
    • To protect domestic firms from cheaper foreign rivals
    • To increase exports from the country to every other nation
    • To make imported goods cheaper for all domestic consumers

  6. A consumer effect of a tariff on imported goods is most likely to be:

    • lower prices for the imported products
    • a wider variety of domestically made goods
    • no change in the price of any goods
    • higher prices for the imported products

  7. Which best describes a benefit for a business of membership of a trade bloc?

    • Guaranteed lower wage bills for all staff
    • Exemption from all local taxes
    • An automatic rise in the value of its shares
    • Easier access to a larger market with fewer tariffs

  8. An imported bicycle costs £200. A 15% tariff is added to its price. What is the new price before other costs?

    • £230
    • £215
    • £300
    • £185

  9. A UK firm imports goods from a country with a 20% tariff. The goods are worth £500. What is the tariff amount?

    • £25
    • £100
    • £520
    • £20

  10. A government removes a 10% tariff on a product worth £80 before tariff. What is the change in the price paid for it?

    • A fall of £0.80
    • A fall of £80
    • A rise of £8
    • A fall of £8

  11. A business faces a tariff in one overseas market but not in another within a trade bloc. What best explains this?

    • The bloc only trades in services and not in physical goods at all
    • The other country is a bloc member with reduced tariffs
    • The bloc requires all imports to be taxed more heavily than before
    • Tariffs are randomly applied to some businesses and not others

  12. Which situation is most likely to encourage a firm to export to a bloc member country?

    • A ban on all exports from the firm's own country
    • Removal of tariffs between bloc members
    • An increase in import duties in that country
    • A new tariff on all goods entering the bloc

  13. A domestic firm complains that cheap imports are hurting its sales. What would a tariff most likely do for it?

    • Make the firm's exports cheaper for buyers in other countries
    • Make imports dearer, so home goods look cheaper
    • Make domestic goods dearer for consumers who buy in the UK
    • Allow imports to be sold for free to all UK consumers

  14. A UK business imports goods from a non-bloc country where a 12% tariff applies to £2,500 of goods. What is the duty owed?

    • £300
    • £30
    • £2,812
    • £208

  15. A retailer finds that tariffs on its imported textiles rose from 5% to 15%. What is the most likely effect on its costs?

    • Costs fall because the tariff acts as a subsidy
    • Costs stay the same because tariffs do not affect prices
    • Costs fall, so margins grow automatically
    • Costs rise, so margins may shrink unless prices increase

  16. Two countries in a trade bloc remove internal tariffs. A firm in one exports to the other. What is the most likely result?

    • The firm must pay a higher tariff on each export
    • Exports become cheaper for the buyer, which may raise demand
    • Exports become dearer for the buyer
    • Exports stop entirely because of the bloc

  17. Which argument best supports tariffs to protect an infant industry?

    • They make the infant industry's goods cheaper for all overseas buyers
    • They give a new domestic firm time to grow before facing full overseas competition
    • They guarantee that the industry never faces any competition
    • They remove the need for research and development

  18. What is the strongest drawback of tariffs for consumers?

    • Lower prices and more choice of imported goods
    • Higher prices and less choice of imported goods
    • No effect on prices, but better quality of goods
    • Faster delivery times for all products

  19. A bloc member's business is hit by a tariff from a non-member country. Which strategy is most sensible?

    • Ignore the tariff and assume it will soon disappear
    • Lobby for a trade deal, or sell more in markets with no tariff
    • Stop trading in the bloc entirely
    • Raise prices by the full tariff without any other review

  20. A product costs £60 before a 20% tariff is applied. What is its price after the tariff?

    • £63
    • £80
    • £72
    • £12

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