What are the possible advantages of free trade, Microeconomics

Assignment Help:

What are the possible advantages of free trade?

Firms

a)  Specialisation and enhanced use of comparative advantage

b)  Possibility of advantages of scale

c)  Spread and knowledge of technology - production gains

d)  Spread of skills and labour capital

e)  Access to new/wider markets

  • consumers

a) Increased choice, i.e. variety

b) lower prices

c) overall consumer welfare (consumer surplus - outside of syllabus) in lower prices and increased consumption

d) Increase in standard of living

 


Related Discussions:- What are the possible advantages of free trade

Currency unions and optimum, CURRENCY UNIONS AND OPTIMUM: This Section...

CURRENCY UNIONS AND OPTIMUM: This Section explains the working of monetary unions and common currency areas. The Section also examines the case for and against optimum currenc

Elasticity, elasticity concept in policy formulation

elasticity concept in policy formulation

Draw a supply or demand diagram of the treasury bond market, 1) A) Suppose ...

1) A) Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due largely to increases in the price of energy and food related commodities following sev

Market structures, implication tructures of various market structures for p...

implication tructures of various market structures for price determination

Economic growth and economic development, Economic growth and Economic deve...

Economic growth and Economic development: Economic Growth refers to an increase in real aggregate output (real GDP) reflected in increased real per capita income.A country is

Economics, illustrate and explain using diagrams how a single seller within...

illustrate and explain using diagrams how a single seller within the market can maintain an inefficient allocation of resourcesquestion #Minimum 100 words accepted#

Elasticity, You estimate that the price elasticity of demand for one-acre p...

You estimate that the price elasticity of demand for one-acre plots in Lusaka is -1.5 and that income elasticity of demand is 5. Land owners intend to increase the price of a one-a

Minimum welfare level for the poorest senior household, Consumer Behavior: ...

Consumer Behavior: The government considers different calculations to help senior citizens with their increasing heating bills. One proposal on the table is to pay 20% of senio

Economic models, the general characterictics of economic models,its limitat...

the general characterictics of economic models,its limitations and verification

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd