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?
- AEngaging in international trade enables the country to achieve a higher average standard of living.
- BOther countries are more efficient at producing some goods.
- CThere are some products that the country cannot produce.
- 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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