ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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By providing more jobs
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By providing more money to the economy
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By decreasing prices
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By selling goods without making a profit
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By buying goods for a higher price
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Detailed explanation-1: -Trade is an engine of growth that creates jobs, reduces poverty and increases economic opportunity. The World Bank Group helps its client countries improve their access to developed country markets and enhance their participation in the world economy.
Detailed explanation-2: -If import prices rise relative to export prices, we say there has been a deterioration in the terms of trade. Generally, this leads to a decline in living standards as foreign currency earnings are relatively less and imported consumer goods more expensive.
Detailed explanation-3: -Numerous emerging market and developing economies have undergone trade liberalisation. Since lowering import barriers typically exerts a downward pressure on prices, evolving trade liberalisation represents a structural break from the inflation forecasting perspective.
Detailed explanation-4: -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.