International trade and protectionism Flashcards
1
Q
What is partial equilibrium analysis?
A
Partial equilibrium analysis looks at one industry only and uses consumer and producer surplus to analyse welfare change
2
Q
What is general equilibrium analysis?
A
Uses PPF and indifference curves to analyse the effects of (free trade)
3
Q
What is protectionsism?
A
Use of trade instruments to restrict international trade
