Advantages and disadvantages of trade

Question 1

Advantages

Answer 1

Increased employment as a result of multiplier effect and increased export production

Comparative advantage, specialising in goods that can be made more efficiently at a lower cost

Transfer of technology

Purchasing of power

Economies of scale

Question 2

Disadvantages

Answer 2

Deskilling as technology replaces man power

stunted growth or decline of local industry

Exploitative and labour intensive industry