Free Trade

Question 1

Free trade

Answer 1

-when the government doesn’t discriminate against imports
-stimulate trade between nations
-engage in specialisation, don’t need to produce all goods for citizens in the nation

Question 2

Benefit for consumers

Answer 2

-lower prices
-better choice of products

Question 3

Benefits for a business

Answer 3

-access to foreign markets
-sell overseas without tariffs
-take advantage of raw materials from other country with no protectionist costs

Question 4

Benefit for the economy

Answer 4

-development of growth for businesses, provides growth for the economy
-employment inside economy

Question 5

Drawbacks

Answer 5

-firms within the economy that will now have bigger competition
-smaller or new firms cant remain competitive as foreign enters into their market
-cant afford to produce as cheaply as foreign firms

Question 6

conclusion

Answer 6

-benefits not experienced universally
-businesses could experience uncertainty