This question attracted a good number of candidates who performed above average.
However, few of the candidates only provided answer for the (a) part of the question but failed to state the limitations of the law of comparative cost advantage as a theory of international trade as required in the (b) part of the question.

            Candidates were expected to include any two of the following in their answers to score
            maximum marks in the (b) part of this question.

(b)        Some limitations of the law are:

(i)         It assumes that there are no transport costs.

1. It assumes free mobility of factors of production.
2. It assumes that production conditions (technology and the resource      base of countries) will remain the same over time.
3. There are two countries in the world.
4. There are two commodities.
5. There are no trade restrictions or barriers to trade.