A UK garden-tool producer awards all future orders to an overseas factory where production costs are lower. Its UK workshop previously completed these orders. The tools will continue to be sold to UK shoppers.
Which of the following is the most likely result of the producer's decision?
Prices paid by UK shoppers may rise, and employment at the UK workshop may decrease
Prices paid by UK shoppers may fall, and employment at the UK workshop may decrease
Prices paid by UK shoppers may rise, and employment at the UK workshop may increase
Prices paid by UK shoppers may fall, and employment at the UK workshop may increase
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.