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The role of markets

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Question 61

Stimulus: Renewable Energy and Mineral Cooperation in the Andean Corridor

Bilateral commerce between Chile and Bolivia has surged as both nations transition towards low-carbon technologies. This economic integration has been catalysed by the construction of high-capacity cross-border electrical grids, which permit the seamless export of solar-generated power from the Atacama Desert. Furthermore, the mutual abolition of export duties on raw lithium and refined copper has significantly reduced production overheads, encouraging each country to focus on its distinct geological advantages.

Using information from the stimulus material, identify two factors driving specialisation and trade.

[2]

The role of markets Questions

  1. A Level
  2. /Economics
  3. /The role of markets