A free trade agreement lowers import taxes. Consumers pay less for imported food, but some domestic farms close. Which evaluation is best?
Consumer gains should be weighed against losses to less competitive domestic producers and workers
The agreement benefits every group equally
Farm closures prove consumers paid higher prices
Free trade agreements apply only to services
21 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.