Free Trade Agreements

Question 1

What is international trade

Answer 1

exchange of goods and services between countries

Question 2

What is free trade

Answer 2

trade without tariffs or other barriers

Question 3

What are some of the benefits of free trade (5)

Answer 3

Reduced administrative barriers mean costs are lower
cheaper imports = lower costs
larger markets are more accessible firms to sell in foreign countries
more choice of goods and higher quality
firms in higher competition

Question 4

What are the negatives of free trade (3)

Answer 4

negative externalities that effect environment

exploitation of workers

national economy suffer due to outsource of labour

Question 5

What are some restrictions involved in trade (4)

Answer 5

Tariffs - tax on importer
Quotas - limit
embargoes - ban
Regulation -