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Economics · Oct / Nov 2021 · Paper 13 · Question 27

2281Specialisation and free trade

Malaysia and Indonesia specialise in the production of palm oil. What is a disadvantage of specialisation?

  1. Aconcentration of labour in the activity in which it is most productive
  2. Bcreation of jobs to meet world demand
  3. Creliance on trade with other countries for other goods
  4. Drising palm oil prices

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Correct answer: C. reliance on trade with other countries for other goods

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