free trade Flashcards
1
Q
what is free trade?
A
free trade is trade without the introduction of artificial barriers
2
Q
what are examples of artificial barriers:
A
examples of artificial barriers:
- quotas
- tariffs
- embargoes
- subsidies to domestic firms
- quality standards
- healthy and safety regulations
3
Q
what are the potential advantages of free trade?
A
the potential advantages of free trade are:
1) increased competition for producers
2) better use of scarce resources
3) dynamic efficiency gains
4) economies of scale
5) a stimulant to economic growth
4
Q
what does the World Trade Organisation (WTO) aim to do?
A
the WTO aims to make trade as free as possible
5
Q
what is the World Trade Organisation?
A
the World Trade Organisation is an international …