Question 22N.3.HL.TZ0.2a.ii
| Date | November 2022 | Marks available | [Maximum mark: 4] | Reference code | 22N.3.HL.TZ0.2a.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Explain | Question number | a.ii | Adapted from | N/A |
Figure 2 illustrates the daily world price of wheat in US dollars (US$) per kilogram from August 2020 to February 2021.
Figure 2
On 17 December 2020, Turkey eliminated a 20 % tariff it had imposed on wheat imports from Russia. Russia had recently decided to introduce a tax on its wheat exports. Turkey is the largest flour exporter in the world and Turkish flour exporters buy 85 % of the wheat they need in their production process from Russia.
[Source: Hürriyet Daily News, 2020. Turkey extends zero-tariffs on wheat imports to April [online] Available at:
https://www.hurriyetdailynews.com/turkey-extends-zero-tariffs-on-wheat-imports-to-april-160933 [Accessed
29 September 2021] Source adapted.]
Using Figure 2 and the information, explain two reasons that may account for Turkey’s decision to eliminate the 20 % tariff on wheat imports from Russia.
[4]
Reasons may include:
- The price of wheat has been rising; it had increased by 35% in 6 months. Elimination of the tariff would keep wheat prices low and help to maintain the competitiveness of Turkish flour (in its export markets).
- Russia had recently decided to introduce a tax on its wheat exports. Elimination of the tariff would keep wheat prices low and help to maintain the competitiveness of Turkish flour (in its export markets).
- Elimination of the tariff would decrease the costs of producing wheat and thus the price of flour in Turkey, reducing inflationary pressure.
- By eliminating the tariff on wheat imports, Turkey may hope that Russia will reciprocate and eliminate the tax on wheat exports.
- The Turkish government supports trade liberalization as a policy for efficiency / growth / development / diplomacy
- There may have been a poor harvest in Turkey and thus the policy would help to prevent the domestic wheat price from increasing / ensure food security
- Any other valid reason.
Generally well-answered. Candidates referred to the price increase and the Russian export tax as reasons for removing the tariff. Lower-achieving responses were not able to develop the explanation by referring to the cost of living or to flour production/export. There were many good responses which referred to diplomatic relations, food security and trade liberalization.
