Costs of Free trade Flashcards
How is overdependancy bad of trade?
if countries specialise in goods with a comparative advantage, they may be left exporting only one or two products.
How are jobs bad of trade?
structural unemployment may occur due to the decline of some industries as production moves overseas
How is distribution of income bad of trade?
rising inequality may occur as the benefits of trade occur mostly to the rich.
How is the environment bad of trade?
Trade can cause an unsustainable use of resources and greater environmental problems
How is sovereignty bad of trade
countries have less control over economies and more dependent upon decisions of other countries and MNCs
How is culture bad for trade?
some argue the exposure of consumers to foreign goods erodes the cultural identity of a country
