International Trade + Global Economy Flashcards
(5 cards)
1
Q
What is international trade?
A
exporting and importing goods to other economies
2
Q
What is free trade?
A
free movement of goods and services without any restrictions e.g tariffs
3
Q
Name 5 benefits of trade
A
economies of scale
lower prices
increased exports
more choice
more competition
4
Q
Name two arguments for restricting trade
A
infant industry argument
environmental
5
Q
What is the infant industry argument referencing?
A
the fact that developing countries might have industries that are relatively new and wont be able to compete with international competition so they should be given time to strengthen their industry
