ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Poor people
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Economically challenged individuals
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Impoverished communities
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Stakeholders who are under economic duress
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Detailed explanation-1: -Trade liberalization can pose a threat to developing nations or economies because they are forced to compete in the same market as stronger economies or nations. This challenge can stifle established local industries or result in the failure of newly developed industries there.
Detailed explanation-2: -Due to liberalisation there will be an increased dependence on other nations for forex, technology etc. There will be economic instability as any changes in the currency in foreign markets will result in a significant impact on the economy.
Detailed explanation-3: -Economic duress in contract occurs, for example, where a party to a contract (A) threatens to cancel the contract unless the other party (B) agrees to their demands and B has no other practical option but to agree to the new terms of the contract.
Detailed explanation-4: -Trade liberalisation allows countries to specialise in producing the goods and services where they have a comparative advantage (produce at lowest opportunity cost). This enables a net gain in economic welfare.