new edxecel business book theme 4

Question 1

why does government place legislation and protect its domestic producers

Answer 1

to prevent dumping = when firms sell product at a lower cost than in domestic market it is unfair
to protect infant industry = potential of growing markets

to prevent entry of harmful or undesirable goods

Question 2

what is FTA
what is custom union
common markets

Answer 2

FTA = where all trade barriers are removed for member countries

custom union is where all member countries have same or similar barriers of entry to non member countries

common market = workers can relocate from one country to another without facing restrictions

Question 3

nafta and asean members

Answer 3

ASEAN members are China new Zealand Korea Japan Australia and India

nafta = America canda and mexico