Selvara is an island country with fertile farmland suitable for growing olives and limited textile-production skills. The table shows the cost of producing or importing two goods.
| Good | Cost of producing in Selvara | Cost of importing |
|---|---|---|
| Olive oil (per litre) | £4 | £6 |
| Winter jacket (each) | £80 | £45 |
Using the information in the table, explain why Selvara may specialise in olive oil and import winter jackets.
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.