Specialisation and free trade
6.1What the syllabus asks of you
- Specialisation by country: definition of specialisation by country
- Specialisation by country: the basis for specialisation by country in terms of the best resource allocation and/or low-cost production
- Specialisation by country: advantages and disadvantages of specialisation
- Free trade: definition of free trade
- Free trade: advantages and disadvantages of free trade
Read the notes first
Chapter 6: Specialisation and free trade
Drill this topic
Every question on Specialisation and free trade, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
22 questions
1May / June 2026 · Paper 11 · Q27Show mark scheme →
Aa large low-skilled workforce
Ba shortage of raw materials to make cloth
Chigh transport costs for completed garments
Dstrong competition in the international market for clothes
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2May / June 2026 · Paper 12 · Q17Show mark scheme →
Ato improve health standards through an efficient healthcare system
Bto support export-oriented firms by negotiating free trade deals
Cto redistribute income through direct taxation
Dto increase productivity levels by spending on education
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3May / June 2026 · Paper 12 · Q27Show mark scheme →
Aincreased average costs of production
Bincreased diversification
Cincreased exposure to external shocks
Dincreased income equality
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4Oct / Nov 2025 · Paper 12 · Q27Show mark scheme →
AChoice is limited.
BCountries become over-dependent on each other.
CResources are used more efficiently.
DTransport costs are decreased.
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5Oct / Nov 2025 · Paper 13 · Q27Show mark scheme →
AIt guarantees a balance of trade in goods and services surplus.
BIt increases dependency on other economies.
CIt lengthens international supply chains.
DIt reduces the cost of living.
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6Oct / Nov 2025 · Paper 13 · Q28Show mark scheme →
Aconsumers should experience lower prices
Bconsumers should have a greater choice of goods
Cfirms could be protected from foreign competition
Dfirms could take advantage of economies of scale
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7Oct / Nov 2024 · Paper 12 · Q27Show mark scheme →
Afree trade
Binefficiencies in production
Clabour immobility
Dtariffs
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8Oct / Nov 2024 · Paper 13 · Q27Show mark scheme →
Aa foreign exchange shortage
Bdiseconomies of scale
Cfree trade
Dquotas
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9May / June 2024 · Paper 11 · Q27Show mark scheme →
Adependency on supplies from other countries
Bgreater competition from overseas firms
Cgreater depletion of the country's natural resources
Dlower average costs due to economies of scale
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10Oct / Nov 2021 · Paper 12 · Q27Show mark scheme →
AThey cannot afford to buy products from other countries.
BThey could become structurally unemployed if global demand changes.
CThey have to learn a variety of skills.
DThey have too much choice which wastes their time.
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11Oct / Nov 2021 · Paper 13 · Q27Show mark scheme →
Aconcentration of labour in the activity in which it is most productive
Bcreation of jobs to meet world demand
Creliance on trade with other countries for other goods
Drising palm oil prices
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12May / June 2021 · Paper 11 · Q27Show mark scheme →
AConsumers pay higher prices for goods and services reducing their welfare.
BDomestic firms may be uncompetitive leading to structural unemployment.
CDomestic firms may experience rising costs as they pay more for imports.
DResources may be used less efficiently as domestic firms face less competition.
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13May / June 2020 · Paper 11 · Q28Show mark scheme →
ACountries have a constant demand for raw materials.
BInternational trade only benefits the importing countries.
CIt is necessary for low-income countries to belong to a free trade area.
DRaw materials have fluctuating prices.
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14May / June 2020 · Paper 12 · Q8Show mark scheme →
AOil companies have increased training costs as each worker needs many different skills.
BOil companies may find it difficult to achieve economies of scale.
CResource allocation is not efficient because a narrow range of goods is being produced.
DWorkers may face a restricted range of job opportunities.
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15May / June 2020 · Paper 12 · Q29Show mark scheme →
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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16Oct / Nov 2019 · Paper 13 · Q28Show mark scheme →
AEmployment will be focused in hi-tech industries.
BEnvironmental disasters will be avoided.
CFree trade reduces competitiveness for domestic firms.
DThe cost of living is likely to go down with free trade.
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17May / June 2019 · Paper 12 · Q29Show mark scheme →
Adecreased levels of global output
Bincreased average production costs
Cincreased productivity levels
Doverdependence on other economies
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18Oct / Nov 2017 · Paper 13 · Q30Show mark scheme →
Athe promotion of industrial diversification
Bthe protection of new businesses
Cthe reduction of tariffs
Dthe subsidising of service industries
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19May / June 2017 · Paper 11 · Q28Show mark scheme →
Athe absence of transport costs
Bthe gift of foreign aid from charities
Cthe supply of zero interest rate government loans
Dthe unrestricted exchange of goods and services
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20May / June 2017 · Paper 12 · Q28Show mark scheme →
Afree trade
Binefficiencies in production
Clabour immobility
Dtariffs
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21Oct / Nov 2016 · Paper 12 · Q27Show mark scheme →
Aa foreign exchange shortage
Bdiseconomies of scale
Cfree trade
Dquotas
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22Oct / Nov 2016 · Paper 13 · Q27Show mark scheme →
Aa foreign exchange shortage
Bdiseconomies of scale
Cfree trade
Dquotas
Mark scheme