SSC
GENERAL ECONOMICS
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A potential benefit of trade liberalisation is that it will
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allow countries to specialise in goods in which they have the greatest opportunity cost.
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tend to lead to greater diversity in domestic production.
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lead to inflationary pressure
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lead to higher living standards for domestic consumers.
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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.
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