ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Monopoly in international trade
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Imposition of restrictions in international trade
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Removal of all restrictions from international trade
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The idea of self sufficiency and no international trade by a country
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Detailed explanation-1: -autarky, an economic system of self-sufficiency and limited trade. A country is said to be in a complete state of autarky if it has a closed economy, which means that it does not engage in international trade with any other country.
Detailed explanation-2: -Autarky is an economic system where the nation is self-dependent, i.e., producing all goods/services within the country and not allowing foreign trade (export & import). For Example, North Korea is an autarkic nation that refrains from foreign trade and is self-sufficient in every economic aspect.
Detailed explanation-3: -If a country or group is self-sufficient, it is able to produce or make everything that it needs.
Detailed explanation-4: -Economic self-sufficiency means earning a total family income at a level that enables a family unit to support itself without receipt of a cash assistance grant.
Detailed explanation-5: -When the countries move from autarky to free trade, the price ratio in the United States, P C/P W, rises. The result is a redistribution of income as shown in Table 4.4 “Changes in Real Wages (Autarky to Free Trade): “.