SSC
GENERAL ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A potential benefit of trade liberalisation is that it will
|
|
allow countries to specialise in goods in which they have the greatest opportunity cost.
|
|
|
tend to lead to greater diversity in domestic production.
|
|
|
lead to inflationary pressure
|
|
|
lead to higher living standards for domestic consumers.
|
Explanation:
Detailed explanation-1: -Trade contributes to global efficiency. When a country opens up to trade, capital and labor shift toward industries in which they are used more efficiently. That movement provides society a higher level of economic welfare.
Detailed explanation-2: -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.
There is 1 question to complete.