Two neighbouring countries, Lydon and Sora, introduce a trade agreement. The countries already trade refrigeration equipment with each other.
| Measure | Before the agreement | After the agreement |
|---|---|---|
| Tariff on imported refrigeration equipment | 9% | 1% |
| Average border clearance time | 30 hours | 6 hours |
Using the data, explain how both changes shown are likely to increase trade in refrigeration equipment between Lydon and Sora.
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.