Global markets in action
5 important questions on Global markets in action
What is a national comparative advantage?
Name the three effects of exports
- price rises above world price which is higher than national price
- demand cuts world price
- supply cuts world price: at that price it is higher than demand. The surplus will be exported.
What happens if there is international trade?
buyers of imported goods benefit from lower prices and sellers of exported goods benefit from higher prices.
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What happens to the surplus with import?
What are the four main tools to restrict international trade and to protect domestic producers from the competition?
2. import quotas
3. export subsidies
4. other import barriers
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