international trade and development

Question 1

benefits of international trade and development

Answer 1

-exploit comparative advantages: resources, increase exports, ad and growth
-consumers benefit from lower prices, increased choice and political relations
-economies of scale and efficiency benefits, rise profits
-tech transfer and growth of secondary industries

Question 2

barriers to trade and development

Answer 2

-resource curse: primary commodity dependence: falling prices, depletion.
-price fluctuations: inelastic demand and supply
-access ton international markets limited: protectionist measures, tariff escalation
-long term decline in terms of trade (export prices relative to import prices fall) index of export prices over index of import prices