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Economics (AS & A Level) · Oct / Nov 2025 · Paper 14 · Question 28

9708The reasons for international trade

Which explanation for a country choosing to engage in international trade is not valid?

  1. AEngaging in international trade enables the country to achieve a higher average standard of living.
  2. BOther countries are more efficient at producing some goods.
  3. CThere are some products that the country cannot produce.
  4. DThe country has a comparative advantage in the production of all of its goods compared to other countries.

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Correct answer: D. The country has a comparative advantage in the production of all of its goods compared to other countries.

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