Please enable JavaScript.
Coggle requires JavaScript to display documents.
ACTIVITY 2.2: INTERNATIONAL TRADE (FOR REDUCING (Populist pressure,…
ACTIVITY 2.2: INTERNATIONAL TRADE
FOR INCREASING
Push towards more specialisation
Comparative advantage
#
Businesses expanding into overseas markets can generate more profit
Difficulty reversing existing international trade agreements - BREXIT
World Trade Organisation (WTO)
Free-trade agreements
Delivers greatest good to greatest number of people
Increases total production, productivity & efficiency
Increases country's GDP
Leads to increased competition & innovation
FOR REDUCING
Populist pressure
Protection of domestic industry
Cost of inequalities & bad economic performance
Rising unemployment & depressed economy
Comparative avantage: welfare gain diffused, welfare loss acute
Protection of 'infant' industries: developing countries
National defence: avoids loss of supply during war-time
Desire to be self-sufficient
Balance of payments difficulties