Cambridge IGCSE Economics

6.1Specialisation and free trade

Specialisation and free trade in Cambridge IGCSE Economics: what the syllabus expects you to know, the learning objectives and how to practise.

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Lessons

Home and foreign trade and specialisation by country
30 min
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Why countries trade: absolute and comparative advantage
35 min
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Free trade: meaning, advantages and disadvantages
30 min
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Sample question

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Specialisation and free trade: sample question

Two fictional countries use the same quantity of resources. The table shows what each can produce of either good.

Country	Copper (tonnes)	Sugar (tonnes)
Country K	50	10
Country L	20	30

Which statement is correct?

Choose one answer

AK has the absolute advantage in both goods
BL has the absolute advantage in copper and K in sugar
CK has the absolute advantage in copper and L in sugar
DNeither country has an absolute advantage

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