5. The following is a list of other factors that can make trade beneficial (i) Trade is an engine of growth. (i) Non-economic factors. (ii) Increased competition. (iv) Differences in demand. (v) Decreasing costs. Into which one of these five categories do the following examples fit? (a) By specialising in certain export, the country may become increasingly skilled in their production. (b) Free trade between countries may encourage closer political co-operation (c) When the rest-of-the-world economy expands, this will increase the demand for a country's exports and also raise its export prices relative to import prices. (d) Consumer tastes for products differ between different countries. (e) Allowing imports freely into a country may stimulate domestic producers to be more efficient.
5. The following is a list of other factors that can make trade beneficial (i) Trade is an engine of growth. (i) Non-economic factors. (ii) Increased competition. (iv) Differences in demand. (v) Decreasing costs. Into which one of these five categories do the following examples fit? (a) By specialising in certain export, the country may become increasingly skilled in their production. (b) Free trade between countries may encourage closer political co-operation (c) When the rest-of-the-world economy expands, this will increase the demand for a country's exports and also raise its export prices relative to import prices. (d) Consumer tastes for products differ between different countries. (e) Allowing imports freely into a country may stimulate domestic producers to be more efficient.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter34: Globalization And Protectionism
Section: Chapter Questions
Problem 52CTQ: In principle, the benefits of international trade to a country exceed the costs, no matter whether...
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Transcribed Image Text:5. The following is a list of other factors that can make trade beneficial
(i) Trade is an engine of growth.
(ii) Non-economic factors.
(iii) Increased competition.
(iv) Differences in demand.
(v) Decreasing costs.
Into which one of these five categories do the following examples fit?
(a) By specialising in certain export, the country may become increasingly skilled in their
production.
(b) Free trade between countries may encourage closer political co-operation
(c) When the rest-of-the-world economy expands, this will increase the demand for a country's
exports and also raise its export prices relative to import prices.
(d) Consumer tastes for products differ between different countries.
(e) Allowing imports freely into a country may stimulate domestic producers to be more efficient.
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