TopicalEconomics 0455International trade and globalisationInternational specialisationPaper 1

International specialisation — Paper 1 · IGCSE Economics 0455

6.1· 62 questions · 62 marks · 74 min · 2006–2025· Multiple choice

Every Cambridge IGCSE Economics Paper 1 question on international specialisation, laid out as 12 A4 pages with the mark scheme below. Nothing is left out. Free to read, no account.

Different topic or paper

Questions12 pages

Question 1: The central area of a country produces tea for which it has an ideal climate. The coastal area produces coconuts because its climate is dif…Question 2: What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tari…Question 3: Zambia is the fifth largest producer and the second largest exporter of copper in the world. Copper brings Zambia 85 % of all the money Zam…Question 4: Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging divers…Question 5: Firms often advertise saying that they specialise in providing a certain product or service. What is an advantage of such specialisation? A…1 / 12
Question 6: What is an advantage if a region specialises in a narrow range of products? A Other regions will become over-dependent on the region. B Sca…Question 7: Which of the following increases specialisation? A A farmer decides to convert some of his farm buildings into holiday cottages for rent. B…Question 8: What is not an advantage of specialisation and division of labour? A A product is manufactured in separate stages, making it easier to use …Question 9: What benefit is likely to result from the extension of specialisation within manufacturing? A For a consumer, there are more individually m…Question 10: Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging divers…Question 11: Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging divers…2 / 12
Question 12: What might be a direct benefit to the individual worker of a specialised job? A Specialisation can enable the worker to become more skilled…Question 13: What might be a direct benefit to the individual worker of a specialised job? A Specialisation can enable the worker to become more skilled…Question 14: What is an advantage to a country of free trade? A greater international diversification of production B greater range of domestically prod…Question 15: Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-paid, unskilled workers t…Question 16: What is thought to be a benefit of global free trade? A It increases the opportunity for domestic producers to specialise. B It increases t…Question 17: What might be a direct benefit to the individual worker of a specialised job? A Specialisation enables a better quality product to be produ…3 / 12
Question 18: A developing country’s two major sources of income from international trade are fishing and tourism. If the country’s exchange rate depreci…Question 19: What might be a direct benefit to the individual worker of a specialised job? A Specialisation enables a better quality product to be produ…Question 20: What might be a direct benefit to the individual worker of a specialised job? A Specialisation enables a better quality product to be produ…Question 21: Russia is the world’s third largest exporter of grain but much of the country’s farmland was damaged by fire in 2010. How would this be rep…Question 22: The citizens of a country which avoids international trade may benefit from A an increase in specialisation. B better political and cultura…4 / 12
Question 23: In 2012, Nokia, a mobile phone manufacturer, produced 18% of Finland’s exports. Why might this be undesirable for Finland? A Foreign demand…Question 24: What is an advantage of international specialisation? A choice is limited B countries become overdependent on each other C resources are us…Question 25: What is an advantage of international specialisation? A choice is limited B countries become overdependent on each other C resources are us…Question 26: What is an advantage of international specialisation? A choice is limited B countries become overdependent on each other C resources are us…Question 27: What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce pr…Question 28: What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce pr…5 / 12
Question 29: What is a disadvantage for a trade union representing workers in a company that has increased specialisation? A Capital equipment can be su…Question 30: What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotasQuestion 31: What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotasQuestion 32: Individuals produced their own goods. They then decided to specialise. They formed a group and offered their skills to each other but witho…Question 33: What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tari…Question 34: What is the best example of specialisation? A a diversified engineering company B a general repairs handyman C a self-sufficient, non-tradi…6 / 12
Question 35: What policy would encourage greater international specialisation? A the promotion of industrial diversification B the protection of new bus…Question 36: The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What m…Question 37: What is the most likely disadvantage of international specialisation? A decreased levels of global output B increased average production co…Question 38: A country changes to a policy of self-sufficiency in agriculture, instead of relying on world supplies. What is likely to happen in the cou…Question 39: Saudi Arabia specialises in oil extraction and refining. This is a capital-intensive industry with highly skilled labour. What might be a d…7 / 12
Question 40: What is a disadvantage of increased specialisation by a country? A It becomes more reliant on imports to meet all its needs. B It reduces t…Question 41: What is most likely to discourage international specialisation and trade for an economy? A decreasing labour supply B decreasing transport …Question 42: What is a disadvantage of increasing international specialisation? A Consumers pay higher prices for goods and services reducing their welf…Question 43: What would be a disadvantage of specialisation for a worker? A a low price of the product that they make B boredom due to repetition of the…Question 44: Why can specialisation cause economic growth? A Specialisation can allow a country to produce many different goods and services. B Speciali…Question 45: A country specialises in the production of steel, toys and textiles. What is a disadvantage of specialisation for the country’s workers? A …8 / 12
Question 46: Malaysia and Indonesia specialise in the production of palm oil. What is a disadvantage of specialisation? A concentration of labour in the…Question 47: When are countries most likely to specialise and trade with each other? A when the cost of transport between them is high B when there are …Question 48: Which effect of increased specialisation by firms and workers is most likely to cause problems for an economy? A better product quality B g…Question 49: What is most likely to result from an extension of specialisation in manufacturing? A for the consumer some prices will be reduced B for th…Question 50: What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce pr…9 / 12
Question 51: Two countries wish to use their scarce resources to specialise in production and trade with each other. Under which conditions is this most…Question 52: What is most likely to promote international specialisation? A similarities in climate in different countries B similarities in the availab…Question 53: Which statement shows two benefits for consumers from specialisation at a national level? A decreased prices and better quality B decreased…Question 54: What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tari…Question 55: What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotas10 / 12
Question 56: A country has large reserves of oil. It decides to produce a wide range of goods rather than specialise in oil production. What is not an a…Question 57: What will increase the level of specialisation in an economy? A A computer manufacturer takes over an advertising company. B A retail store…Question 58: Country Y decides to specialise in the domestic mining of rare metals required in the production of electric-car batteries. What is a likel…Question 59: Chile specialises in the production of copper for export. In what way is the Chilean economy likely to be affected by a large rise in the s…Question 60: What is an advantage for consumers from international specialisation? A competition between firms results in lower prices B labour can move…11 / 12
Question 61: What is an advantage of international specialisation? A Choice is limited. B Countries become over-dependent on each other. C Resources are…Question 62: What is a likely benefit of increased national specialisation? A It guarantees a balance of trade in goods and services surplus. B It incre…12 / 12

Mark scheme62 answers

Answers below. Sit the paper first if you are practising.

Pastlit

Economics 0455 · International specialisation — Paper 1

IGCSE · topical answer key — answer key (teacher use)

Question

Answer

Marks

1A1
2A1
3C1
4C1
5A1
6B1
7C1
8B1
9B1
10C1
11C1
12A1
13A1
14D1
15C1
16A1
17C1
18C1
19C1
20C1
21C1
22D1
23D1
24C1
25C1
26C1
27B1
28B1
29A1
301
31C1
32D1
33A1
34D1
35C1
36C1
37D1
381
39D1
40A1
41D1
42B1
43B1
44B1
45B1
46C1
47B1
48B1
49A1
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Pastlit

Economics 0455 · International specialisation — Paper 1

IGCSE · topical answer key — answer key (teacher use)

Question

Answer

Marks

50B1
51B1
52D1
53A1
54A1
55C1
56B1
57D1
58B1
59A1
60A1
61C1
62D1
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All of International trade and globalisation

Questions as text

Q1 · The central area of a country produces tea for which it has an ideal climate 0455/11 May/June 2006

38 The central area of a country produces tea for which it has an ideal climate. The coastal area produces coconuts because its climate is different. Assuming there is no change in market conditions, what will happen if this country subsequently produces only tea in both areas? A It will increase its costs of production. B It will increase the productivity of its land. C It will increase its total income. D It will make the best use of its resources.

1 marks

Answer: A

This question in 0455/11 May/June 2006

Q2 · What might encourage international specialisation between countries? 0455/11 May/June 2006

39 What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tariffs

1 marks

Answer: A

This question in 0455/11 May/June 2006

Q3 · Zambia is the fifth largest producer and the second largest exporter of copper in the… 0455/11 May/June 2007

39 Zambia is the fifth largest producer and the second largest exporter of copper in the world. Copper brings Zambia 85 % of all the money Zambia earns in trade. What can be concluded from this? A Copper prices are high because Zambia is a large producer. B Manufacturing production in Zambia is very diversified. C Zambia can influence the world price of copper. D Zambia produces copper more cheaply than all other countries.

1 marks

Answer: C

This question in 0455/11 May/June 2007

Q4 · Which policy would best enable a government to encourage greater specialisation in the… 0455/11 Oct/Nov 2007

24 Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging diversification in industry B protecting small businesses C reducing tariffs on imports D subsidising job creation in rural areas

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2007

Q5 · Firms often advertise saying that they specialise in providing a certain product or… 0455/11 Oct/Nov 2007

36 Firms often advertise saying that they specialise in providing a certain product or service. What is an advantage of such specialisation? A Employees become experts in that area. B Employees can easily switch to other jobs. C Firms can quickly adapt production if their service is no longer required. D Production is dependent on other firms supplying components.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2007

Q6 · What is an advantage if a region specialises in a narrow range of products? 0455/11 May/June 2008

38 What is an advantage if a region specialises in a narrow range of products? A Other regions will become over-dependent on the region. B Scarce resources are used more efficiently. C The level of production in the region will decrease. D The region’s system of transport is improved.

1 marks

Answer: B

This question in 0455/11 May/June 2008

Q7 · Which of the following increases specialisation? 0455/11 Oct/Nov 2008

38 Which of the following increases specialisation? A A farmer decides to convert some of his farm buildings into holiday cottages for rent. B A government decides that a country should be more self-sufficient in food production. C A restaurant owner decides to have only vegetarian meals on his menu. D A taxi driver decides to train for an additional licence to drive a bus.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2008

Q8 · What is not an advantage of specialisation and division of labour? 0455/11 May/June 2009

28 What is not an advantage of specialisation and division of labour? A A product is manufactured in separate stages, making it easier to use machinery. B Some workers become more dependent on other workers. C Workers complete a limited range of tasks and become more efficient at them. D Workers spend less time moving from one task to another.

1 marks

Answer: B

This question in 0455/11 May/June 2009

Q9 · What benefit is likely to result from the extension of specialisation within… 0455/11 Oct/Nov 2009

28 What benefit is likely to result from the extension of specialisation within manufacturing? A For a consumer, there are more individually made goods available. B For a consumer, there could be a lower cost of living. C For an employee, job satisfaction will increase. D For an employee, the nature of work is more varied.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2009

Q10 · Which policy would best enable a government to encourage greater specialisation in the… 0455/11 May/June 2010

30 Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging diversification in industry B protecting small businesses C reducing tariffs on imports into its country D subsidising job creation in rural areas

1 marks

Answer: C

This question in 0455/11 May/June 2010

Q11 · Which policy would best enable a government to encourage greater specialisation in the… 0455/12 May/June 2010

28 Which policy would best enable a government to encourage greater specialisation in the use of its country’s resources? A encouraging diversification in industry B protecting small businesses C reducing tariffs on imports into its country D subsidising job creation in rural areas

1 marks

Answer: C

This question in 0455/12 May/June 2010

Q12 · What might be a direct benefit to the individual worker of a specialised job? 0455/11 Oct/Nov 2010

13 What might be a direct benefit to the individual worker of a specialised job? A Specialisation can enable the worker to become more skilled. B Specialisation enables a better quality product to be produced. C Specialisation enables the firm to introduce more machinery. D Specialisation makes better use of resources.

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2010

Q13 · What might be a direct benefit to the individual worker of a specialised job? 0455/13 Oct/Nov 2010

10 What might be a direct benefit to the individual worker of a specialised job? A Specialisation can enable the worker to become more skilled. B Specialisation enables a better quality product to be produced. C Specialisation enables the firm to introduce more machinery. D Specialisation makes better use of resources.

1 marks

Answer: A

This question in 0455/13 Oct/Nov 2010

Q14 · What is an advantage to a country of free trade? 0455/11 May/June 2012

29 What is an advantage to a country of free trade? A greater international diversification of production B greater range of domestically produced goods C greater reliance on other countries D greater specialisation in the use of resources

1 marks

Answer: D

This question in 0455/11 May/June 2012

Q15 · Changes in demand mean that the government of Bangladesh hopes to switch some production… 0455/13 May/June 2012

22 Changes in demand mean that the government of Bangladesh hopes to switch some production from clothes made by low-paid, unskilled workers to medicines produced by highly-trained technicians. Which policies would enable Bangladesh to achieve this switch in employment and production? A close clothes factories and decrease imports B encourage immigration of foreign labour and introduce tariffs on clothing C invest in education and purchase new machines D substitute labour for machines and encourage emigration of workers from Bangladesh

1 marks

Answer: C

This question in 0455/13 May/June 2012

Q16 · What is thought to be a benefit of global free trade? 0455/11 May/June 2013

29 What is thought to be a benefit of global free trade? A It increases the opportunity for domestic producers to specialise. B It increases the protection for domestic producers. C It reduces a country’s reliance on other countries. D It reduces the transport costs involved in trading.

1 marks

Answer: A

This question in 0455/11 May/June 2013

Q17 · What might be a direct benefit to the individual worker of a specialised job? 0455/11 Oct/Nov 2013

21 What might be a direct benefit to the individual worker of a specialised job? A Specialisation enables a better quality product to be produced. B Specialisation enables the firm to introduce more machinery. C Specialisation enables the worker to become more skilled. D Specialisation makes better use of resources.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2013

Q18 · A developing country’s two major sources of income from international trade are fishing… 0455/11 Oct/Nov 2013

26 A developing country’s two major sources of income from international trade are fishing and tourism. If the country’s exchange rate depreciated, what is likely to happen? A Imported goods would become cheaper for local people. B The country would definitely become poorer. C The price of fish sold as exports would become cheaper. D Tourists to the country would be discouraged by higher prices.

1 marks

Answer: C

This question in 0455/11 Oct/Nov 2013

Q19 · What might be a direct benefit to the individual worker of a specialised job? 0455/12 Oct/Nov 2013

12 What might be a direct benefit to the individual worker of a specialised job? A Specialisation enables a better quality product to be produced. B Specialisation enables the firm to introduce more machinery. C Specialisation enables the worker to become more skilled. D Specialisation makes better use of resources.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2013

Q20 · What might be a direct benefit to the individual worker of a specialised job? 0455/13 Oct/Nov 2013

12 What might be a direct benefit to the individual worker of a specialised job? A Specialisation enables a better quality product to be produced. B Specialisation enables the firm to introduce more machinery. C Specialisation enables the worker to become more skilled. D Specialisation makes better use of resources.

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2013

Q21 · Russia is the world’s third largest exporter of grain but much of the country’s farmland… 0455/11 May/June 2014

7 Russia is the world’s third largest exporter of grain but much of the country’s farmland was damaged by fire in 2010. How would this be represented on demand and supply diagrams for the Russian grain market and for a country importing Russian grain? market for Russian grain Russian grain market in the importing country A demand curve shifts to the left demand curve shifts to the right B demand curve shifts to the right supply curve shifts to the right C supply curve shifts to the left supply curve shifts to the left D supply curve shifts to the right demand curve shifts to the left

1 marks

Answer: C

This question in 0455/11 May/June 2014

Q22 · The citizens of a country which avoids international trade may benefit from A an increase… 0455/12 May/June 2014

28 The citizens of a country which avoids international trade may benefit from A an increase in specialisation. B better political and cultural ties. C competitive pressure to improve the quality of goods. D more employment in their industries.

1 marks

Answer: D

This question in 0455/12 May/June 2014

Q23 · In 2012, Nokia, a mobile phone manufacturer, produced 18% of Finland’s exports 0455/12 May/June 2014

29 In 2012, Nokia, a mobile phone manufacturer, produced 18% of Finland’s exports. Why might this be undesirable for Finland? A Foreign demand for mobile phone firms may grow continuously. B Nokia may introduce new technology which raises total costs by less than output. C There may be a reduction in trade restrictions on mobile phones. D There may be an industrial dispute at Nokia.

1 marks

Answer: D

This question in 0455/12 May/June 2014

Q24 · What is an advantage of international specialisation? 0455/11 May/June 2015

28 What is an advantage of international specialisation? A choice is limited B countries become overdependent on each other C resources are used more efficiently D transport costs are decreased

1 marks

Answer: C

This question in 0455/11 May/June 2015

Q25 · What is an advantage of international specialisation? 0455/12 May/June 2015

28 What is an advantage of international specialisation? A choice is limited B countries become overdependent on each other C resources are used more efficiently D transport costs are decreased

1 marks

Answer: C

This question in 0455/12 May/June 2015

Q26 · What is an advantage of international specialisation? 0455/13 May/June 2015

28 What is an advantage of international specialisation? A choice is limited B countries become overdependent on each other C resources are used more efficiently D transport costs are decreased

1 marks

Answer: C

This question in 0455/13 May/June 2015

Q27 · What is most likely to encourage international specialisation? 0455/11 Oct/Nov 2015

29 What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce products more cheaply than other countries C the discovery of oil in a country that had no oil before D very high international transport costs

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2015

Q28 · What is most likely to encourage international specialisation? 0455/12 Oct/Nov 2015

29 What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce products more cheaply than other countries C the discovery of oil in a country that had no oil before D very high international transport costs

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2015

Q29 · What is a disadvantage for a trade union representing workers in a company that has… 0455/12 Feb/March 2016

8 What is a disadvantage for a trade union representing workers in a company that has increased specialisation? A Capital equipment can be substituted for labour. B Different abilities can be used fully. C Production levels are decreased. D Workers are able to gain a higher level of skill.

1 marks

Answer: A

This question in 0455/12 Feb/March 2016

Q30 · What encourages international specialisation? 0455/12 Oct/Nov 2016

27 What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotas

1 marks

This question in 0455/12 Oct/Nov 2016

Q31 · What encourages international specialisation? 0455/13 Oct/Nov 2016

27 What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotas

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2016

Q32 · Individuals produced their own goods 0455/11 May/June 2017

10 Individuals produced their own goods. They then decided to specialise. They formed a group and offered their skills to each other but without the use of money. What is not likely to be the result for the group? A It will enjoy a rise in its material standard of living. B It will have a wider choice of goods and services. C It will need to use a system of barter. D It will save time in obtaining goods and services.

1 marks

Answer: D

This question in 0455/11 May/June 2017

Q33 · What might encourage international specialisation between countries? 0455/12 May/June 2017

28 What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tariffs

1 marks

Answer: A

This question in 0455/12 May/June 2017

Q34 · What is the best example of specialisation? 0455/13 Oct/Nov 2017

8 What is the best example of specialisation? A a diversified engineering company B a general repairs handyman C a self-sufficient, non-trading country D an old person’s helper and care assistant

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2017

Q35 · What policy would encourage greater international specialisation? 0455/13 Oct/Nov 2017

30 What policy would encourage greater international specialisation? A the promotion of industrial diversification B the protection of new businesses C the reduction of tariffs D the subsidising of service industries

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2017

Q36 · The table shows the rice yield in four countries 0455/13 May/June 2018

30 The table shows the rice yield in four countries. rice yield country (kilos per hectare) Japan 64 China 53 Bangladesh 20 Thailand 20 What may be concluded from this information? A Bangladesh and Thailand produce the same amount of rice. B Japan produces more than three times as much rice as Bangladesh. C Japan produces the largest amount of rice per hectare. D Japan produces the largest amount of rice per person employed.

1 marks

Answer: C

This question in 0455/13 May/June 2018

Q37 · What is the most likely disadvantage of international specialisation? 0455/12 May/June 2019

29 What is the most likely disadvantage of international specialisation? A decreased levels of global output B increased average production costs C increased productivity levels D overdependence on other economies

1 marks

Answer: D

This question in 0455/12 May/June 2019

Q38 · A country changes to a policy of self-sufficiency in agriculture, instead of relying on… 0455/12 Feb/March 2020

30 A country changes to a policy of self-sufficiency in agriculture, instead of relying on world supplies. What is likely to happen in the country as a result? A Agricultural prices will rise. B Farm output will fall. C More farmers will be unemployed. D More food will be imported.

1 marks

This question in 0455/12 Feb/March 2020

Q39 · Saudi Arabia specialises in oil extraction and refining 0455/12 May/June 2020

8 Saudi Arabia specialises in oil extraction and refining. This is a capital-intensive industry with highly skilled labour. What might be a disadvantage of this specialisation? A Oil companies have increased training costs as each worker needs many different skills. B Oil companies may find it difficult to achieve economies of scale. C Resource allocation is not efficient because a narrow range of goods is being produced. D Workers may face a restricted range of job opportunities.

1 marks

Answer: D

This question in 0455/12 May/June 2020

Q40 · What is a disadvantage of increased specialisation by a country? 0455/12 May/June 2020

29 What is a disadvantage of increased specialisation by a country? A It becomes more reliant on imports to meet all its needs. B It reduces the potential for international trade. C It results in access to a greater variety of goods for consumers. D It results in lower costs for home produced goods.

1 marks

Answer: A

This question in 0455/12 May/June 2020

Q41 · What is most likely to discourage international specialisation and trade for an economy? 0455/13 Oct/Nov 2020

28 What is most likely to discourage international specialisation and trade for an economy? A decreasing labour supply B decreasing transport costs C increasing oil prices D increasing trade barriers

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2020

Q42 · What is a disadvantage of increasing international specialisation? 0455/11 May/June 2021

27 What is a disadvantage of increasing international specialisation? A Consumers pay higher prices for goods and services reducing their welfare. B Domestic firms may be uncompetitive leading to structural unemployment. C Domestic firms may experience rising costs as they pay more for imports. D Resources may be used less efficiently as domestic firms face less competition.

1 marks

Answer: B

This question in 0455/11 May/June 2021

Q43 · What would be a disadvantage of specialisation for a worker? 0455/12 May/June 2021

10 What would be a disadvantage of specialisation for a worker? A a low price of the product that they make B boredom due to repetition of the same task C higher quality of the good D the opportunity to undertake training

1 marks

Answer: B

This question in 0455/12 May/June 2021

Q44 · Why can specialisation cause economic growth? 0455/11 Oct/Nov 2021

27 Why can specialisation cause economic growth? A Specialisation can allow a country to produce many different goods and services. B Specialisation can lead to a reduction in average costs of production. C Specialisation can mean that firms in a country will face diseconomies of scale. D Specialisation can reduce a country’s need to depend on other economies.

1 marks

Answer: B

This question in 0455/11 Oct/Nov 2021

Q45 · A country specialises in the production of steel, toys and textiles 0455/12 Oct/Nov 2021

27 A country specialises in the production of steel, toys and textiles. What is a disadvantage of specialisation for the country’s workers? A They cannot afford to buy products from other countries. B They could become structurally unemployed if global demand changes. C They have to learn a variety of skills. D They have too much choice which wastes their time.

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2021

Q46 · Malaysia and Indonesia specialise in the production of palm oil 0455/13 Oct/Nov 2021

27 Malaysia and Indonesia specialise in the production of palm oil. What is a disadvantage of specialisation? A concentration of labour in the activity in which it is most productive B creation of jobs to meet world demand C reliance on trade with other countries for other goods D rising palm oil prices

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2021

Q47 · When are countries most likely to specialise and trade with each other? 0455/13 May/June 2022

27 When are countries most likely to specialise and trade with each other? A when the cost of transport between them is high B when there are large differences in their resource allocations C when they have access to the same technology D when they have high tariffs and other protective measures

1 marks

Answer: B

This question in 0455/13 May/June 2022

Q48 · Which effect of increased specialisation by firms and workers is most likely to cause… 0455/12 Oct/Nov 2022

14 Which effect of increased specialisation by firms and workers is most likely to cause problems for an economy? A better product quality B greater interdependence C higher productivity D improved resource allocation

1 marks

Answer: B

This question in 0455/12 Oct/Nov 2022

Q49 · What is most likely to result from an extension of specialisation in manufacturing? 0455/11 Oct/Nov 2023

27 What is most likely to result from an extension of specialisation in manufacturing? A for the consumer some prices will be reduced B for the country there will be less dependency on international trade C for the employee the work will become more varied D for the producer there will be less efficiency

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2023

Q50 · What is most likely to encourage international specialisation? 0455/13 Oct/Nov 2023

27 What is most likely to encourage international specialisation? A similarities in climate in different countries B the ability to produce products more cheaply than other countries C the discovery of oil in a country that had no oil before D very high international transport costs

1 marks

Answer: B

This question in 0455/13 Oct/Nov 2023

Q51 · Two countries wish to use their scarce resources to specialise in production and trade… 0455/12 Feb/March 2024

27 Two countries wish to use their scarce resources to specialise in production and trade with each other. Under which conditions is this most likely to happen? the ability of each the resource country to allocations of the reallocate their two countries resources A different difficult B different easy C similar difficult D similar easy

1 marks

Answer: B

This question in 0455/12 Feb/March 2024

Q52 · What is most likely to promote international specialisation? 0455/13 May/June 2024

27 What is most likely to promote international specialisation? A similarities in climate in different countries B similarities in the availability of natural resources in different countries C instability in foreign exchange rates D the abolition of tariffs and customs duties

1 marks

Answer: D

This question in 0455/13 May/June 2024

Q53 · Which statement shows two benefits for consumers from specialisation at a national level? 0455/11 Oct/Nov 2024

27 Which statement shows two benefits for consumers from specialisation at a national level? A decreased prices and better quality B decreased profits and high-quality raw materials C increased choice and high transport costs D increased productivity and increased economies of scale

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2024

Q54 · What might encourage international specialisation between countries? 0455/12 Oct/Nov 2024

27 What might encourage international specialisation between countries? A free trade B inefficiencies in production C labour immobility D tariffs

1 marks

Answer: A

This question in 0455/12 Oct/Nov 2024

Q55 · What encourages international specialisation? 0455/13 Oct/Nov 2024

27 What encourages international specialisation? A a foreign exchange shortage B diseconomies of scale C free trade D quotas

1 marks

Answer: C

This question in 0455/13 Oct/Nov 2024

Q56 · A country has large reserves of oil 0455/12 Feb/March 2025

27 A country has large reserves of oil. It decides to produce a wide range of goods rather than specialise in oil production. What is not an acceptable reason in support of this decision? A Oil is a non-renewable resource that could be exhausted quickly. B Producing a wide range of goods increases the benefits from free trade. C Relying on other countries for vital goods and services makes a country vulnerable. D The price of oil is volatile, making export revenue unstable.

1 marks

Answer: B

This question in 0455/12 Feb/March 2025

Q57 · What will increase the level of specialisation in an economy? 0455/11 May/June 2025

27 What will increase the level of specialisation in an economy? A A computer manufacturer takes over an advertising company. B A retail store issues its own credit card. C A travel agent provides transport to the airport. D A vehicle assembler reduces its range of vehicles.

1 marks

Answer: D

This question in 0455/11 May/June 2025

Q58 · Country Y decides to specialise in the domestic mining of rare metals required in the… 0455/13 May/June 2025

27 Country Y decides to specialise in the domestic mining of rare metals required in the production of electric-car batteries. What is a likely benefit of this for country Y? A increased emigration B increased exports C increased imports D increased tariff revenue

1 marks

Answer: B

This question in 0455/13 May/June 2025

Q59 · Chile specialises in the production of copper for export 0455/11 Oct/Nov 2025

22 Chile specialises in the production of copper for export. In what way is the Chilean economy likely to be affected by a large rise in the supply of copper from other countries? employment economic growth A fall fall B fall rise C rise fall D rise rise

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2025

Q60 · What is an advantage for consumers from international specialisation? 0455/11 Oct/Nov 2025

27 What is an advantage for consumers from international specialisation? A competition between firms results in lower prices B labour can move more freely between countries C less wealth is created throughout the world D multinational companies can increase their profits

1 marks

Answer: A

This question in 0455/11 Oct/Nov 2025

Q61 · What is an advantage of international specialisation? 0455/12 Oct/Nov 2025

27 What is an advantage of international specialisation? A Choice is limited. B Countries become over-dependent on each other. C Resources are used more efficiently. D Transport costs are decreased.

1 marks

Answer: C

This question in 0455/12 Oct/Nov 2025

Q62 · What is a likely benefit of increased national specialisation? 0455/13 Oct/Nov 2025

27 What is a likely benefit of increased national specialisation? A It guarantees a balance of trade in goods and services surplus. B It increases dependency on other economies. C It lengthens international supply chains. D It reduces the cost of living.

1 marks

Answer: D

This question in 0455/13 Oct/Nov 2025