Economics 2281 · O Level · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

For developed economies, it costs less to import some cereals from developing economies than to grow them within the country. What could cause international trade in cereals to fall?

  • ACereals become less popular with the population of developing economies.
  • BDeveloped economies place an embargo on cereal imports to prevent disease.
  • CGovernments tax cereal production in developed economies.
  • DProducers of cereals in developing economies are subsidised.

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