A UK software company is considering selling its services in one of two countries. Each proposed free trade agreement would cover software services. The company regularly sends staff to clients to install software or provide support.
| Potential market | Population | Distance from the UK |
|---|---|---|
| Country A | 68 million | 800 km |
| Country B | 45 million | 9,000 km |
Using the information, explain why an agreement with Country A may be more valuable to the software company than an agreement with Country B.
85 exam-style questions on OCR GCSE Economics 4.1 Importance of international trade, covering 4.1.1 Why countries import and export and 4.1.2 Free trade agreements. Each one has a worked solution and a mark scheme showing where the marks go.