Arrangements to growth of global trade.

Question

What is meant by the concept of "trade creation"? a. Inefficient trade that follows the establishment of a free - trade area. b. Trade based on comparative advantage that typically follows the reduction of trade barriers. C. The opening up of new trading routes. d. Regional trade agreements. e. Increased exports and reduced imports as a result of a high-tariff policy.

Answer 1

Question

Chapter 32, Problem 1FCT

To determine

Arrangements to growth of global trade.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

What is meant by the concept of "trade creation"? a. Inefficient trade that follows the establishment of a free - trade area. b. Trade based on comparative advantage that typically follows the reduction of trade barriers. C. The opening up of new trading routes. d. Regional trade agreements. e. Increased exports and reduced imports as a result of a high-tariff policy.

The failure of the Doha round of negotiation after many years has led to an increase in regional trade agreements. Using trade theory, discuss the effect of regional trade agreements in Africa and their potential in improving economic outcomes (employment, prices, etc.).

Which of the following is a benefit of global trade? a) Increased chances of trade surplus b) Better access to factors of production C) Better access to natural resources d) Greater dependence on a single economy, lowering the economic risk for multinational firms.