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4 International trade and the global economy

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Question 85

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?

[1]
A

The Belor supplier may have an advantage, because selling steel into Arven is now cheaper and easier for it than for the Corda supplier

B

The Corda supplier may have an advantage, because the agreement lowers the charges on goods from countries outside it

C

Neither supplier gains an advantage, because the agreement only lowers the charges on goods that Arven sells to Belor

D

The Belor supplier may have an advantage, because the agreement removes every cost of selling steel in Arven

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4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /4 International trade and the global economy

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