IA session 1

How to write a (IA)commentary

from Student’s perspective-
This year 3/CSE firm is not sure
May 2022 Amendments
The commentary document contains…..
1.Create a new document….
2.Paste the article…….
3.Start commentary on new page of the
document

4.Include word count……..

5.Example and discussion
Beginning of the commentary.
a) Discuss briefly about the articles you have chosen.
b) Connect it with the theory (100 words max)

Discuss the important area related to the article with data, and connect it with
the theory…….

Some special statements from the article, write it with your own words.

Avoid all kind of quotes…….

………...Example and discussion
 Introduction
• The above article discusses about the retaliation of European Union countries and
UK against the American tariffs on them. Trade protection against America.
America threatened to impose tariff of $7.5bn on European union and UK goods,
because it provides more subsidies to Airbus firm to manufacture A380 and A350
Jets and increased duty from 10% to 15%. Europe threatened with retaliation with
the American trade policy and complained with WTO, and if there is no action
from the WTO, the retaliation with multiple tariffs against American product
would be levied. Hence advised the US authorities, trade retaliation would affect
both countries people and their Wellbeing
Reminder:
Using only one concept, rest are used as terminology
c) Use and write of relevant definition(s) / terminology (and
consistently use throughout the commentary). (Criteria B) (50
words max)

• d) Identification and linkage of key concept to the article.

• 50 words.

• (you can use it any part of the commentary, I am using it

with / after the terminology.)
• …………Example and discussion
• International trade means, exchange of goods and services between
countries. Trade protectionism means the deliberate move by a
country to control imports while promoting exports.

• Tariff means the duty levied on import or export

1. The concept used is Economic Wellbeing. Finally, America holds
off the hike in tariffs. The high objection and retaliate measures that
would affect the American people by raising their price of imported
goods like machinery, vehicles, pharmaceuticals, plastic articles,
optical, organic chemicals, mineral fuels and more. The raise of
tariffs from either side would affect the common people and their
wellbeing.
 Common mistake in diagram !!!

Use 10% at Pw & 15% at Pw + T

• The below diagram shows that US imposing of the tariffs on European Union(EU) and UK , it
alternatively effects on the people and the stakeholders and the misallocation of resources,
inefficiency of production and the end would be welfare loss to all nations. SE and DE refer
domestic supply and demand curves of EU and UK. Horizontal curve shows the US supply and
price. Before increasing the Tariff from 10 to 15% the import of goods from America to EU and UK
was Q1 to Q4 at Pw price, while the domestic price was Pd. The effect of Imposing of Tariffs leads
to increase in the price to Pw+t, the export of US also less, means Q2 to Q3. At Pw price they
produced Q1 and demanded Q4, when price increased, they produce Q2 and demand is Q3.

• On the other hand, the consumers lost the area of ‘f’. The inefficiency of production was cleared by
international trade, because of protective measures and retaliate actions the Wellbeing of EU
customers lost. US faces the reduced export and their producers suffers lot and loosing Economic
Wellbeing. It would create low employment and low wages and moving towards recession too
• However, the policy of raising tariff on EU & UK will not bring any benefits to US, because US depends on Europe in many ways. Imports including

automobile parts or accessories, blood fractions including antisera, iron and steal, mineral fuel. The market share of these products is high and trade

diversion is impossible. Long-term benefit depends on free trade than imposing tariffs. The effect on stakeholders is high and the customers,

producers are worst off. The decreasing export or import lead to low production and further increase in unemployment and low income, ultimately the

loss of wellbeing. Domestic income distribution is worse off, because import duty is a kind of regressive tax and burden on people and their

disposable income is lesser than before. Inefficiency in domestic production. Domestic producers are not able to attain the Q4 level and limited to Q3,

even the price raised to Pw+t. The loss of area ‘d’ is another example of productive inefficiency. International trade’s benefit is to reduce the price and

increase the quantity to meet the demand. It was achieved by Pw and before international trade it was Pd. US producers are also worse off due to low

export from US, due to raise in the tariffs. Airbus needs lot of research and development to make big planes like A380. A 350 to carry large number of

people and non-stop long-distance travel. It’s a wellbeing to all nations and it should be subsidized and US must support to make the easy moment of

people and cargo and it’s a long-term effect on all economies.

• Inconclusion, the US policy on imposing more tariffs will lead to global misallocation of resources and shifting production from more efficient

producing country to low efficient domestic countries and make losses and economic wellbeing is affected. Hence, free trade is the solution.