(a)[8]
Explain the limitations of the theory of comparative advantage in accounting for a country’s pattern of trade.
(b)[12]
Discuss whether the introduction of trade barriers against imports can always be justified.
Economics 9708 · AS & A Level · International trade and free trade
International trade and free trade — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Comparative advantage exists when a country can produce at a lower opportunity cost than another. This reflects the country’s factor endowment. It provides the foundation for specialisation, higher output and the gains from trade.” …
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