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59 views18 pagesUnit 3 IEED CONTD
ETC 5th sem
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0% found this document useful (0 votes)
59 views18 pagesUnit 3 IEED CONTD
ETC 5th sem
Uploaded by
Dhurvesh HingnekarCopyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
/ 18
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A. Advantages of free trade
Free trade occurs when there are no
restrict the flow of goods and services
When
producers from international
ii,
artificial barriers put in place by governments to
between trading nations.
such as tariffs and subsidies are put in place, they protect domestic
reate trade flows.
trade barriers,
I competition and redirect, rather than cr
Increased production
aes
Free trade enables countries to specialise in the production of those commodities". 5
in which they have a comparative advantage oe BS
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With specialisation countries are able to take advantage of efficiencies generated’ O =<
from economies of scale and increased output. vies
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International trade increases the size of a firm’s market, resulting in lower
