Unit 6.2 - Paper 2 Exam Practice Questions
Unit 6.2 - Paper 2 Exam Practice Question (1)Answers(a) Explain how free trade allows firms to enjoy economies of scale. [2]Free trade allows firms to access a larger and possibly global market [1], resulting in potential cost savings as they can serve larger international markets for their goods and services [1].(b) Explain why increased competition is an argument in favour of free international trade. [2]