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Chapter 5

International trade

2.1 Benefits of international trade

 Greater choice of goods. e.g. food that cannot be grown
domestically due to climate

 Specialisation Countries can specialise in producing
goods where they have an advantage.

 Greater economies of scale will Access to larger global markets result in
result. lower costs (and lower prices?)

 Extra competition Should result in lower costs and/or
better products

 The extra demand from exports However may get more imports instead.
should reduce unemployment
.

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