ECONOMICS (CBSE/UGC NET)

ECONOMICS

TRADE EXCHANGE AND INTERDEPENDENCE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

New Zealand goods are very expensive. Norway’s goods are cheaper. What would happen the level of GDP of each country if they entered into a trade agreement?

A	New Zealands increase, Norway decrease
B	New Zealands decrease, Norway decrease
C	New Zealands increase, Norway increase
D	New Zealands decrease, Norway increase

Explanation:

Detailed explanation-1: -The EU-New Zealand free trade agreement (FTA) – announced in early July – is the first of its kind to include legally enforceable commitments on climate measures, as well as gender equality and environment and labour standards.

Detailed explanation-2: -The Regional Comprehensive Economic Partnership (RCEP) is a trade agreement that includes the Association of South East Asian Nations (ASEAN), as well as Australia, China, Japan, South Korea and New Zealand.

Detailed explanation-3: -The foundation of this relationship is the Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA, or the CER Agreement). The CER Agreement is one of the most comprehensive bilateral free trade agreements in existence.

Detailed explanation-4: -New Zealand has a free market economy in which the prices of goods and services are determined in a free price system. New Zealand is a member of the Asia-Pacific Economic Cooperation (APEC) and the Trans-Pacific Partnership (TPP).

There is 1 question to complete.