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

International trade and free trade — practice question

A developing country depends strongly on producing a primary product for its national income. Which change would make it more likely that the country benefits from taking part in international trade?

  • Aan increase in income elasticity of demand for the primary product
  • Ban increase in tariffs imposed on the primary product by developed countries
  • Can increase in the cost of international freight transport in real terms
  • Dan increase in the price of manufactured products relative to the primary product

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