Assume that you are employed in a major European strawberry producer. Write a report on the changing European/British strawberry market .It should follow a normal report structure.
The main body of the report should answer the following questions:
Imported strawberries from outside the European Union face a tariff of 12.8%
1. Using a supply and demand diagram explain the impact of this tariff on the European strawberry market.
2. Explain who are the main winners and losers of this tariff policy.
3. Post Brexit the UK may introduce stricter controls on immigrant labour. Analyse the impact of any restrictions on the UK strawberry sector using a supply and demand diagram.
4. Using a supply and demand diagrams explain how a common market in European strawberry together with tariff against lower price strawberry producers can lead to trade creation and trade diversion. Explain the gains and losses involved in these and evaluate whether the gains exceed the losses.
5. Evaluate the main issues facing the British and World strawberry sectors over the next few years.