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3 marksInternational Trade

CAPE Economics Unit 2 · 2016 · Paper 2 · Question 6(a)(i)

Question 6 covers comparative advantage, regional trade, and trade balance policies.

Explain the theory of comparative advantage.

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Other parts of this question

  1. 6(a)(ii)Describe the trade patterns in the Caribbean.[2 marks]
  2. 6(b)Describe TWO advantages and TWO disadvantages of regional trading groups, such as North American Free Trade Agreement (NAFTA).[12 marks]
  3. 6(c)Discuss the effectiveness of devaluation and quota policies in addressing trade deficits.[8 marks]

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