Economic Trade and Protectionism

These flashcards cover key concepts related to economic trade, advantages of open trade, and protectionist policies.

What is a macro-economic advantage of more open trade for a country?

Increased economic efficiency, encouraging countries to specialize in producing goods and services where they have a comparative advantage, leading to more efficient use of resources and overall output.

What positive impact does more open trade have on national income?

Improvement of national income and improved consumer welfare, providing access to a wider variety of goods and services at lower prices, thus enhancing the standard of living.

What is a micro-economic advantage of more open trade for a business?

Access to larger markets, enabling lower costs, importing cheaper raw materials or intermediate goods, leading to economies of scale and increased competitiveness.

What are some examples of protectionist policies?

Tariffs, embargoes, and quotas.

How does more open trade improve productivity?

Increased competitiveness leads to innovation and efficiency.