SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One 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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reduce the level of the current account deficit in the short term
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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: -Stimulates Economic Growth. Greater Variety of Goods for Consumption. More Employment. Consumption at Cheaper Costs. Better Use and Allocation of Resources. Undercuts the Prices of Local Farmers. It Might Lead to Job Outsourcing. May Lead to Countries Losing Agriculture Base. 11-Aug-2022
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