Notes On Trade And Trade

2335 Words10 Pages
Diane ZIINO
1/2/2015

Contents
Introduction 3
Chapter 1 4
Free Trade 4
Absolute and Comparative advantage 4
Gains from International Trade 6
Protectionism and Barriers to Trade 6
World Trade Organisation 7
The role of NAFTA 7
Chapter 2 8
The UK Balance of payments 8
The General Trends in UK trade over the last 30 years 9
Exchange rates and their affect on the UK Balance of payments 9
Fixed and floating exchange rates: The advantages and disadvantages 10
Fixed and floating exchange rates: The effects on individuals and business 10
Chapter 3 11
Newly Industrialised Countries (NICs) 11
Characteristics of NCIs 11
Issues 11
LDCS 11
NICs 12
Transnationals Firms 12
Bibliography 13

Introduction

“A day will come when there will be no battlefields, but markets opening to commerce and minds opening to ideas.” Victor Hugo
This report will offer explanation of free trade and associated factors

Chapter 1
Free Trade

Free trade, also called laissez-faire, a policy by which a government does not discriminate against imports or interfere with exports by applying tariffs (to imports) or subsidies (to exports). A free-trade policy does not necessarily imply, however, that a country abandons all control and taxation of imports and exports (Encyclopedia Brittanica)

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Absolute and Comparative advantage

Trade is based on one question and two key economic theories; Absolute and
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