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Economics (AS & A Level) · Oct / Nov 2025 · Paper 11 · Question 28

9708The reasons for international trade

What is not a limitation of the theory of comparative advantage?

  1. Athe movement of factors of production between countries
  2. Bgovernments’ imposition of trade restrictions
  3. Cone country being more efficient in the production of all goods
  4. Dtransport costs outweighing any comparative advantage

As printed in the paper

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Correct answer: C. one country being more efficient in the production of all goods

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