T1 Free Trade and Protection 3 PPT Flashcards
What is trade liberalisation?
Reducing barriers to trade (tariffs, quotas, subsidies).
What is globalisation?
he increased interconnectedness of economies through trade, investment, and communication.
What is the purpose of the WTO?
Oversees global trade, ensuring fairness and reducing trade barriers.
What are the key impacts of trade liberalisation?
Economic growth, lower prices through competition, and access to a variety of goods.
Name two key functions of the WTO.
Settles trade disputes and provides a forum for negotiations.
List three principles of the WTO.
Non-discrimination, transparency, and fair competition.
How do consumers benefit from trade liberalisation?
Access to cheaper and better-quality goods.
How does trade liberalisation benefit economic growth?
Encourages investment and innovation.
How does increased competition help the economy?
It leads to greater efficiency and productivity.
Why is specialisation beneficial in trade?
Countries focus on producing goods where they have a comparative advantage.
: How does trade liberalisation attract foreign direct investment (FDI)?
By making economies more open and competitive.
: What is a major downside of trade liberalisation for workers?
: Job losses in industries that cannot compete with imports.
How can globalisation affect local cultures?
Large global brands can overshadow local businesses and traditions.
How can trade liberalisation contribute to income inequality?
Benefits are not always evenly distributed.
How does trade liberalisation impact the environment?
Increased production can lead to resource depletion and pollution.
What is a tariff?
: A tax on imported goods to make them more expensive.
: What is an import license?
A special permit required to import certain goods.
How can standards and regulations act as trade barriers?
By imposing strict health and safety rules on imports.
What is a quota?
A limit on the number of imports allowed into a country.
What is a subsidy?
Government financial support for domestic producers.
What is comparative advantage?
When a country can produce a good at a lower opportunity cost than another.
How does specialisation impact economic growth?
It improves productivity and promotes trade.
What is specialisation?
When countries focus on producing goods they are best at, increasing efficiency and trade.
What does the Production Possibility Frontier (PPF) model show?
A: It illustrates production possibilities before and after trade.
