Several countries remove tariffs on laboratory equipment traded between them. A manufacturer that previously sold only in its home country can now sell its equipment throughout the group.
Which outcome is an argument in favour of this agreement?
The manufacturer can produce on a larger scale and reduce its average costs
The government collects a higher tax on each item of imported equipment
The quantity of equipment entering each country is restricted by a tighter limit
The manufacturer faces fewer potential rivals in its home market
118 exam-style questions on AQA GCSE Economics 2.4 International trade and the global economy, covering 2.4.1a The importance of trade, 2.4.1b Advantages of trade and interdependence, 2.4.1c UK exports and imports, 2.4.2a How exchange rates are determined, 2.4.2b Effects of exchange rate changes, 2.4.3a Free-trade and its arguments, 2.4.3b Free-trade agreements such as the EU, 2.4.4a Features and growth of globalisation, 2.4.4b Benefits and drawbacks of globalisation, and 2.4.4c Moral, ethical and sustainability considerations. Each one has a worked solution and a mark scheme showing where the marks go.