Concept:International division of labour occurs when countries specialise in producing goods where they have an advantage and trade with others.
Better transport lowers the cost and time of moving goods, making such specialisation more profitable.
Explanation:An improved transport system boosts trade by connecting markets more easily.
It reduces barriers like high shipping costs and delays.
Countries can then rely on importing what others produce best and focus on their own strengths.
This encourages deeper specialisation and international division of labour.
In contrast, exchange rate instability, trade restrictions, and higher tariffs all discourage trade and specialisation.
Answer:A. Improvement in transport system.