international trade Flashcards
1
Q
benefits of international trade
A
- welfare gains and increased availability of goods
- raising living standards
- increased competition
- economies of scale for producers
- source of economic growth
- spur to innovation and dynamic efficient
2
Q
costs of international trade
A
- negative externalities and depletion of natural resources
- gains from trade are overall, individual industries may be made worse off
- can make countries reliant on other countries
- vulnerable to exchange rate fluctuations
3
Q
what is the term that describes removing trade restrictions?
A
trade liberalisation
4
Q
what is the advantage of a country that specialises in and production of a product the best?
A
maximised productivity
5
Q
when there’s reduced government intervention in an industry by selling off state owned enterprises
A
privatisation
