Please enable JavaScript.
Coggle requires JavaScript to display documents.
International Trade - Coggle Diagram
International Trade
-
-
Free trade agreement
-
-
Free trade agreements mean that there is no restriction that the receiving country place on foreign goods
The European Union
The EU is a group of European countries that have joined together to make a range of agreements that affect their laws and economics
This means that there are no import taxes or fixed quantities of imports and exports between EU countries
These agreements prevent the occurrence of business practices that reduce competition within the EU, which are considered harmful
Benefits
For consumers
Producers need to compare against a wider range of producers internationally, so may reduce price to try to keep or gain market share
Producers may react to increased competition by investing in research and development (R&D) so their goods and services become better quality
For producers
International trade gives access to more potential consumers. With greater output needed to meet this demand, producers may benefit from greater economics of scale. This means they have lower average costs, which may result in greater profits