CH 37 International trade Flashcards
(5 cards)
1
Q
What are the reasons promoting free trade?
A
-To obtain goods that cannot be produced domestically
-To obtain goods that can be bought more cheaply from overseas
-To sell off unwanted commodities
2
Q
What is free trade?
A
A situation in which goods coming in or out of the country are not controlled or taxed
3
Q
What are the advantages of free trade?
A
-Lower prices and increased choice for consumers
-Lower input prices
-Wider markets for businesses
4
Q
What are input prices?
A
the costs associated with the raw materials and resources used in the production of goods and services
5
Q
What are the disadvantages of free trade?
A
-Competition for domestic businesses
-Higher unemployment
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