Lesson 31-Global Markets Flashcards
1
Q
What are static gains from trade?
A
This is increased welfare due to countries specialising and trading
2
Q
What are dynamic gains from trade?
A
These are due to increased competition faced by businesses leading to better quality from products, more investment and greater efficiency
3
Q
How does international trade impact prices domestically?
A
It lowers the price of an imported good and raises the price of an exported good
4
Q
How do buyers of imported goods benefit from international trade?
A
Benefit from lower prices
5
Q
How do sellers of exported goods benefit from international trade?
A
They benefit from higher prices
6
Q
A
