A-LevelEconomicsInternational economic issues9708/12 · May/June 2012 · Q191 Mark
A country has a comparative advantage in producing spices. Why may it choose not to specialise in spices?
AThe country experiences a lower opportunity cost in producing spices than other countries.
BThere are high tariffs imposed by other countries on the import of spices.
CThere is a low cost of transporting spices to other countries.
DThere is high world income elasticity of demand for spices.
✓ Correct answer
B: There are high tariffs imposed by other countries on the import of spices.
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