A UK camping-equipment retailer used to buy all its tents from UK suppliers. It now also buys tents from producers in several other countries, where wages and other production costs are lower than in the UK.
What is the most likely effect of this change on the prices that UK consumers pay for tents?
They are likely to stay the same, as the tents are still sold in UK shops
They are likely to fall, as the retailer pays its suppliers less for each tent
They are likely to rise, as money flows out of the UK to pay for the imports
They are likely to fall, as UK tent suppliers will receive more orders
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.