4.1 - Benefits of international trade Flashcards
(10 cards)
1
Q
Benefits of international trade
A
- Availability of goods and services
- Increased competition
- Productive efficiency
- Allocative efficiency
- Learning
- Access to market
- Economies of scale
- production costs
- source of forex
2
Q
Elaborate on availability of goods and services
A
More goods can be accessed
3
Q
Elaborate on increased comp
A
Reduces prices and gives buyers more choices
4
Q
Elaborate on productive efficiency
A
producers strive to be more efficient
5
Q
Elaborate on allocative efficiency
A
Countries can access stuff theyre inefficient at producing
6
Q
elaborate on learning
A
production techniques can be leanred
7
Q
Elaborate on access to markets
A
increase in potential revenue
8
Q
Elaborate on economies of scale
A
firms increase porduction so yeah
9
Q
Elaborate on production costs
A
can lower production costs of raw mats
10
Q
Elaborate on source of forex
A
good for developing countries; can buy stuff from the us
