What would encourage the growth of international division of labour?

Step 1: Analyze the question The question asks what would encourage the growth of international division of labour. International division of labour means countries specialize in producing goods or services they can make most efficiently, then trade with one another.

Step 2: Explain the concept For specialization and trade between countries to expand, we need things that make trade easier, cheaper, and more reliable. These include:

• Good transport and communication networks
• Stable exchange rates
• Free movement of goods, capital, and labour
• Low trade barriers (low tariffs, few quotas)

Anything that makes trade harder or more costly will discourage it.

Step 3: Evaluate each option

• A. Improvement in transport system: Better roads, ports, shipping, and air freight lower the cost of moving goods across borders and widen markets. Countries can specialize and still deliver their products. This encourages international division of labour.
• B. Instability in international exchange rate: Unpredictable exchange rates create risk and uncertainty for traders. This discourages trade.
• C. Restrictions on the movement of resources: Limiting the movement of labour, capital, or goods blocks specialization. This discourages it.
• D. Increase in tariff: Tariffs raise the price of imports and reduce trade volumes. This discourages it.

Step 4: Answer The correct answer is **A.

Step 5: Exam tip For "what encourages trade or specialization" questions, look for the option that reduces cost or removes barriers. Words like "restrictions," "increase in tariff," and "instability" almost always point to things that hinder trade. Words like "improvement," "removal," and "stability" usually point to the right answer.