Economics 0455 · IGCSE · International specialisation

International specialisation — practice question

What is one drawback of greater international specialisation?

  • 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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