In Europe, a large portion of avocados are imported from Spain, where they are often grown in energy-intensive greenhouses or water-stressed southern regions during specific seasons. However, a rapidly growing share is sourced from East Africa, notably Uganda. Direct cargo flights regularly depart from Entebbe International Airport to European logistics hubs, carrying fresh organic avocados.
Uganda's avocado cultivation enjoys three major natural advantages over Spain: rich volcanic soils, abundant natural rainfall eliminating the need for expensive artificial irrigation, and year-round equatorial sunshine with stable tropical temperatures. Combined with lower labour costs, Uganda possesses a 365-day-a-year absolute advantage in organic avocado production. Spain, on the other hand, possesses clear cost advantages in high-tech agricultural machinery and food-processing equipment, rather than raw agricultural cultivation.
Organic avocados have become one of Uganda's fastest-growing horticultural exports, contributing approximately 0.8% of national GDP. The sector is a vital source of rural employment, providing direct livelihoods for over 75,000 smallholder farmers and supporting an estimated 1.2 million people across the domestic transport, packaging, and supply chains.
Using the example of organic avocados (Extract G), discuss how the concept of absolute advantage may lead to economic growth in Uganda. Use numerical or diagrammatic analysis in your answer.
103 exam-style questions on Edexcel A A Level Economics 4.1 International economics, covering 4.1.1 Globalisation, 4.1.2 Specialisation and trade, 4.1.3 Pattern of trade, 4.1.4 Terms of trade, 4.1.5 Trading blocs and the World Trade Organisation (WTO), 4.1.6 Restrictions on free trade, 4.1.7 Balance of payments, 4.1.8 Exchange rates, and 4.1.9 International competitiveness. Each one has a worked solution and a mark scheme showing where the marks go.