Arven and Belor have signed a free trade agreement. A steel supplier in Belor and a steel supplier in Corda both want to sell to construction firms in Arven.
Which conclusion about the suppliers' ability to compete in Arven is most accurate?
The Belor supplier may have an advantage, because selling steel into Arven is now cheaper and easier for it than for the Corda supplier
The Corda supplier may have an advantage, because the agreement lowers the charges on goods from countries outside it
Neither supplier gains an advantage, because the agreement only lowers the charges on goods that Arven sells to Belor
The Belor supplier may have an advantage, because the agreement removes every cost of selling steel in Arven
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.