Paper 2 · International Trade
The process of transforming a raw material into a semi-finished or finished product so that it is worth more than it was in its raw state is called value ...
Model answer
addition
Also accepted: value addition, adding, value adding, beneficiation
Explanation: Value addition is the extra worth created at each stage of production, such as turning raw cotton into yarn, then cloth, then garments, or refining lithium ore instead of exporting the rock. The country then earns far more from each unit it sells abroad.
Derived from ZIMSEC Economics 4050/2 Paper 2, June 2023, Q2