A-level Paper 2, June 2018The National and Global Economy
A-level Paper 2, June 2018, Q1(b)
With reference to the theory of comparative advantage, explain how CETA may increase the GDP of both the EU and Canada.
Short answerExplain4 marks
Context
The trade deal known as the Comprehensive Economic and Trade Agreement (CETA) is designed to eliminate or reduce trade barriers between the European Union (EU) and Canada. It is estimated that it will increase trade by 20% and boost EU GDP by 12 billion euros.