What is a likely benefit of increased national specialisation?
It guarantees a balance of trade in goods and services surplus.
It increases dependency on other economies.
It lengthens international supply chains.
It reduces the cost of living.
The table shows the retail price at which the same book can be bought in four countries.
What additional information is required to make a meaningful comparison of the price of the book between the countries?
direct tax rates
exchange rates
inflation rates
level of import tariffs
What is most likely to directly result from a persistent and large current account surplus on the balance of payments of a country?
a lower exchange rate
a lower standard of living
an increase in gross domestic product
an increase in the unemployment rate
A government imposes tariffs on imported goods.
What is not a likely reason for this?
to boost domestic output
to influence the country's balance of payments
to protect domestic employment
to reduce the exports from the country