A country specialises in products for which it has suitable resources and imports products that would be costly to produce domestically. What is the main potential benefit?
It can use resources more efficiently and obtain a wider range of products
It removes scarcity and opportunity cost
It prevents foreign firms entering domestic markets
It guarantees equal incomes
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.