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

Random sampling, Random sampling is a technique for sampling which we can s...

Random sampling is a technique for sampling which we can select a group of subjects or a sample for study from a larger group or a population. Each entity individually is chosen en

Determine the profit-maximizing price, Determine the Profit-Maximizing Pric...

Determine the Profit-Maximizing Price If a firm targets a 25 % rate of return on sales, and has unit costs of production of $100, what price should it charge if it uses cost-p

Elasticity, What are the uses of elasticity to the private sector

What are the uses of elasticity to the private sector

Explain why each of the following factors may influence the, Explain why ea...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the commod

Income elasticity of demand, what are the practical importance of income el...

what are the practical importance of income elasticity of demand?

What is gini coefficient, Q. What is Gini Coefficient? Gini Coefficient...

Q. What is Gini Coefficient? Gini Coefficient: A statistical measure of inequality. A Gini score of 0 signifies perfect equality (in which each individual receives the same inc

Find tax revenue, The US government decides to subsidize solar panels. For ...

The US government decides to subsidize solar panels. For each unit sold, the government pays $T to the buyer. Using a graph, show how this subsidy affects i) consumer surplus, ii)

Asymmetric information - insurance markets, Q. Asymmetric Information - Ins...

Q. Asymmetric Information - Insurance Markets? In the United States, health insurance is usually provided for employees through contracts between the insurance company and thei

Market Structures, Using the key distinguishing features of any market stru...

Using the key distinguishing features of any market structure describe the market structure for the South African mobile telecommunications industry

Capital gain, Capital Gain: A capital gain is a form of profit which is ear...

Capital Gain: A capital gain is a form of profit which is earned on an investment by re-selling an asset for more than it cost to buy. Assets that can be purchased for this purpose

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