Benefits of Trade liberilsation

Question 1

What is acronym and name it

Answer 1

C – Consumption

I – Investment

V – Variety of Goods

I – Income

C – Competition

J – Jobs

Question 2

Consumption Argument

Answer 2

When countries participate in trade, all participants will be able to consume more resources. By specialising in what they are best at, nations can expand their consumption possibility.

Question 3

Inflation Argument

Answer 3

Countries import when the world price is lower than the domestic price, allowing access to cheaper goods and slowing inflation.

Question 4

Income Argument

Answer 4

Trade brings more job opportunities and therefore an increase in real incomes, purchasing power and living standards.

Question 5

Variety of Goods Argument

Answer 5

There are limitations to the types of goods that a country can produce.
Trading allows countries to access goods

Question 6

Competition Argument

Answer 6

-Trade drives domestic producers to improve efficiency to compete on cost. Inefficient businesses may fail, However, long-term benefits include higher output, better quality goods, increased employment, and greater innovation.

Question 7

Jobs Argument

Answer 7

Trade creates new and higher paying jobs.

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