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Economics · May / June 2020 · Paper 12 · Question 29

2281Specialisation and free trade

What is a disadvantage of increased specialisation by a country?

  1. AIt becomes more reliant on imports to meet all its needs.
  2. BIt reduces the potential for international trade.
  3. CIt results in access to a greater variety of goods for consumers.
  4. DIt results in lower costs for home produced goods.

As printed in the paper

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Correct answer: A. It becomes more reliant on imports to meet all its needs.

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