O-LevelEconomicsInternational trade and globalisation2281/11 · May/June 2021 · Q271 Mark
What is a disadvantage of increasing international specialisation?
AConsumers pay higher prices for goods and services reducing their welfare.
BDomestic firms may be uncompetitive leading to structural unemployment.
CDomestic firms may experience rising costs as they pay more for imports.
DResources may be used less efficiently as domestic firms face less competition.
✓ Correct answer
B: Domestic firms may be uncompetitive leading to structural unemployment.
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