Economics · May / June 2020 · Paper 12 · Question 29
2281Specialisation and free trade
What is a disadvantage of increased specialisation by a country?
- AIt becomes more reliant on imports to meet all its needs.
- BIt reduces the potential for international trade.
- CIt results in access to a greater variety of goods for consumers.
- DIt results in lower costs for home produced goods.
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Correct answer: A. It becomes more reliant on imports to meet all its needs.
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