ECONOMICS
BARRIERS TO TRADE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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TRUE
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FALSE
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Either A or B
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None of the above
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Detailed explanation-1: -Arguments for Free Trade It allows goods and services to be produced more efficiently. That’s because it encourages goods or services to be produced where natural resources, infrastructure, or skills and expertise are best suited to them. It increases productivity, which can lead to higher wages in the long term.
Detailed explanation-2: -Free trade is bad for the environment The rigorous exploitation leads to a depletion of resources, which has severe negative long-term effects on the local environment. It also means that the resources are no longer available for the local population, leading to negative impacts on the local economy.
Detailed explanation-3: -International trade allows countries to expand their markets and access goods and services that otherwise may not have been available domestically. As a result of international trade, the market is more competitive. This ultimately results in more competitive pricing and brings a cheaper product home to the consumer.
Detailed explanation-4: -To safeguard domestic employment-as protectionist polices reduce import penetration. To correct balance of payments disequilibrium-as demand for imports is dampened and exports promoted. More items