Specialisation and International Trade Quiz

What is one advantage of specialisation for countries?

• Increased competition

• Higher output

• Higher costs

• Less innovation

Which industry accounted for 70% of Bangladesh's exports in 2016?

• Agriculture

• Technology

• Textiles

• Mining

What is a potential disadvantage of specialisation?

• Dependence on other countries

• Increased product variety

• Lower production costs

• Higher quality products

What does comparative advantage refer to?

• The ability to produce a product at a lower opportunity cost

• The ability to produce a product faster

• The ability to produce more of a product

• The ability to produce a product with higher quality

Which country is mentioned as having a comparative advantage in operating call centres?

• USA

• Bangladesh

• India

• China

What is a risk associated with international trade?

• Reduced market size

• Increased tariffs

• Lower competition

• Higher local production

What can high transport costs do to a country's cost advantage?

• Have no effect

• Increase it

• Offset it

• Enhance it

What is one reason why Mongolia specialises in mining?

• Advanced technology

• High demand for textiles

• Rich mineral resources

• Low labour costs

What happens to a country that relies heavily on a narrow range of products?

• Lower production costs

• Higher employment rates

• Greater risk of economic downturn

• Increased economic stability

What is the primary difference between international and internal trade?

• Internal trade is more complex

• International trade involves tariffs

• International trade occurs between countries

• Internal trade is less risky