ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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peace, better choice, prices and quality
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less imports because they cant penetrate strong markets
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the sharing of the world s resources
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greater benefits for less developed economies as they can trade more
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Detailed explanation-1: -What Are the Advantages of a Free Trade Area? The advantages include greater access to low-priced, high-quality goods, lower prices overall, greater efficiency and innovation in production, increased economic development and living standards, and overall economic growth.
Detailed explanation-2: -Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism.
Detailed explanation-3: -FTAs can force local industries to become more competitive and rely less on government subsidies. They can open new markets, increase gross domestic product (GDP), and invite new investments. FTAs can open up a country to degradation of natural resources, loss of traditional livelihoods, and local employment issues.
Detailed explanation-4: -Trade allows U.S. consumers to buy a wider variety of goods at lower prices, raising real wages and helping families purchase more with their current incomes. This is especially important for middle-class consumers who spend a larger share of their disposable income on heavily-traded food and clothing items.
Detailed explanation-5: -Free trade increases the size of the economy as a whole. Free trade is good for consumers. Reducing non-tariff barriers can remove red tape, thus reducing the cost of trading. More items •08-Sept-2017