Explain the benefits of ‘free trade’ to the UK economy.

You must explain at least 2 benefits to gain full marks

1 mark for each valid explanation.

1 mark for each valid development

Maximum 2 marks for development.

A model answer would look something like this:

Increased competition encourages UK businesses to improve efficiency and innovate (1). This leads to increased productivity and long-term economic growth (1).

When trade agreements reduce subsidies to local industries, the UK government may reallocate those funds to other areas that need it more (1), potentially improving public services or reducing the trade deficit (1).