Liberalisation

Question 1

define liberlisation

Answer 1

the removal/reduction of any restrictions which limit trade in goods and services

Question 2

what does the WTO promote

Answer 2

promotes liberlisation through lower trade barriers and discourages unfair prcatisesthrough rules governing trade conduct

Question 3

gives stats on how tarrifs have reduced since 1945 and how world trade has increased since 1950

Answer 3

40% to 4% tariff drop since 1945

world trade increased by factor of 22 since 1950

Question 4

The WTO: most favourable nation principle

Answer 4

if a country imporves benefits for one trading partner is must do the same for all members of the WTO
but they can set up free trade agreements

Question 5

The WTO: national treatment princple

Answer 5

imported g/s should be treated the same as domestic once entered the country

Question 6

how can the benefits of liberalisation be accounted forby comparative advantage

Answer 6

exporting efficienct goods and importing things other countries are more efficient at can increase production and consumption

Question 7

what is the perecentage of tariffs across all manufacturing inustries in aus

Answer 7

<5%

Question 8

what are the short term effects of lowering protection barriers in order to develop efficinecy

Answer 8

there will be UE in effected industry but over time these human resources are absorbed by other industries

Question 9

what are the 8 arguments for liberalisation

Answer 9

1. increase real income and living standard
2. increase efficiency through competition
3. increases productivity through resource allocation
4. consumers gain lower prices and quality of goods
5. exports gain higher prices and increased mkt access
6. domestic producers gain lower input prices
7. enables greater specialisation and economies of scale
8. openess to trade and investment promotes econ growth