NZQA registered unit standard
8423 version 5
Page 1 of 3
Title
Explain and evaluate arguments for and against free trade and trade
restrictions
Level
5
Credits
2
Purpose
People credited with this unit standard are able to explain and
illustrate, and evaluate, the arguments for and against free
trade and trade restrictions.
Classification
Economic Theory and Practice > Macro Economics
Available grade
Achieved
Explanatory notes
Theory of comparative advantage is applied to a two-country, two-product model, under
the assumption of zero transport costs and no diminishing returns.
Outcomes and evidence requirements
Outcome 1
Explain and illustrate the arguments for and against free trade and trade restrictions.
Evidence requirements
1.1
The explanation provides an argument for free trade consistent with the theory
of comparative advantage.
1.2
The explanation demonstrates understanding of the economic impact of trade
restrictions.
Range
1.3
the explanation may include but is not limited to – graph and/or
case study;
evidence is required of two trade restrictions that include a nontariff barrier, and either a tariff, export subsidy or quota.
The explanation outlines arguments for trade restrictions in terms of their
justification.
Range
arguments – five of – diverse economy, national defence, labour
protection, infant industry, retaliation, national traditions.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
8423 version 5
Page 2 of 3
Outcome 2
Evaluate the arguments for and against free trade and trade restrictions.
Evidence requirements
2.1
The evaluation assesses arguments for trade restriction in terms of their longrun impact on growth, employment, and social well-being.
three of – diverse economy, labour protection, infant industry,
retaliation, national traditions.
Range
2.2
The evaluation compares the possible long-run economic outcomes of trade
restriction with those of a free trade environment in terms of economic
development and employment.
outcomes – three for – trade restriction, free trade.
Range
Planned review date
31 December 2019
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
29 October 1996
31 December 2016
Revision
2
21 July 1999
31 December 2016
Revision
3
14 September 2005
31 December 2016
Review
4
16 October 2009
31 December 2016
Rollover and
Revision
5
16 April 2015
N/A
Consent and Moderation Requirements (CMR) reference
0116
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
8423 version 5
Page 3 of 3
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact NZQA National Qualifications Services nqs@nzqa.govt.nz if you wish to
suggest changes to the content of this unit standard.
NZQA National Qualifications Services
SSB Code 130301
 New Zealand Qualifications Authority 2016