Economics 9708 · AS & A Level · International trade and free trade

International trade and free trade — practice question

A country has a comparative advantage in producing spices. Why might it decide not to specialise in spices?

  • AThe country experiences a lower opportunity cost in producing spices than other countries.
  • BThere are high tariffs imposed by other countries on the import of spices.
  • CThere is a low cost of transporting spices to other countries.
  • DThere is high world income elasticity of demand for spices.

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