Th2.5: International Trade Flashcards
1
Q
Many economists argue that AD can affect economic growth through…
A
export-led growth - a rise in AD through increased exports
2
Q
How has export-led growth been effective?
A
prevents the poor balance of payments that tends to occur as a result of economic growth
3
Q
Although increased exports initially increases AD rather than LRAS, sustained high exports…
A
sustained high export levels will encourage, of force, firms to invest and increase demand for labour, which will increase economic growth
4
Q
In order to become more competitive in the international markets, British firms will have to…
A
become more efficient as they are competing with more firms than in just the UK market
