International Trade Flashcards
1
Q
Free trade
A
Situation in which the goods coming into or going out a country are not controlled or taxed
2
Q
Reasons for international trade
A
- Obtaining goods that cannot be produced domestically
- Some goods can be bought cheaper overseas
- Selling unwanted commodities
3
Q
Advantages of free trade
A
- Lower prices and increased choice for consumers
- Lower input prices
- Wider markets for businesses
4
Q
Disadvantages of free trade
A
- Competition for domestic business
- Unemployment
