Country X specialises in medical equipment and imports food. A drought in its main food-supplying country reduces that country's harvest. Which chain best illustrates interdependence?
Higher food supply lowers Country X's import prices and reduces purchasing power
Medical-equipment output must fall, food prices fall and trade ends
Reduced food supply raises Country X's import prices and lowers consumers' purchasing power
The drought has no effect because it occurred outside Country X
48 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.