Notes On Trade And Trade

2335 WordsJan 26, 201510 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) Image source - http://upload.wikimedia.org/wikipedia/commons/4/43/ActiveBlocs.PNG Absolute and Comparative advantage Trade is based on one question and two key economic theories; Absolute and
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