Economics 0455 · IGCSE · International specialisation

International specialisation — practice question

Two countries want to use their scarce resources to specialise in production and trade with each other. In what conditions is this most likely to occur?

  • Athe resource allocations of the two countries are different; the ability of each country to reallocate their resources is difficult
  • Bthe resource allocations of the two countries are different; the ability of each country to reallocate their resources is easy
  • Cthe resource allocations of the two countries are similar; the ability of each country to reallocate their resources is difficult
  • Dthe resource allocations of the two countries are similar; the ability of each country to reallocate their resources is easy

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