free trade is based on a number of key assumptions

two countries two goods, both operating on the PPC and no transport costs

only two countries , goods, one has lower domestic inflation than the other

a number of countries all completing to ensure the lowest possible cost shown on a supply and demand graph

none of the options are correct

if there were two countries and they used half their resources on either wheat or cars A 10 1 B 1 15 after free trade what would they be produce

A 20 wheat and 0 cars B 0 wheat and 30 cars

C A 11 wheat 0 cars B 0 wheat and 16 cars

a total of 16 cars and 11 wheat in the economy

under the theory of comparative advantage

the country that was less efficient could still benefit by producing goods they have a lower opportunity cost

each country would specialise on what they do best -

each country wouldn't trade because they are independent

each country would sell more poor quality goods overseas and keep the best production for home

the main benefits of free trade include

peace , better choice , prices and quality

less imports because they cant penetrate strong markets

the sharing of the world s resources

greater benefits for less developed economies as they can trade more

the WTO has struggled to get all of the countries to agree to the concept of free trade , so in recent decades the emphasis has been on

bilateral free trade agreements

giving upon free free trade because its so hard to achieve

multilateral multinational collusion

the main benefits of the TPP was

access to more overseas markets with out the tariffs that had blocked australian exports

reduction of domestic subsidies to allow other countries entry into australian markets

world peace , love and understanding

greater economic power for the pacific region and the ability to stop the EU taking over

opponents of the TPP argue that

all tariffs will not be removed in all industries and the gains are very selective

too many of the benefits go to the smaller countries in the TPP

agricultural markets will not be impacted at all by the TPP and it will focus on manufacturing

it highlights the folly of losing the car industry just as the pacific market opens uo and we could have sold our cheaper cars

other opponents critics the TPP because

the main benefits are flowing to the richer countries and smaller countries like Australia will get less than they hoped in the negotiations

it prevents trade with other countries who are not in TPP -

it will be a closed economic system not an open global system

without America it wont have the security and good will to join together

a major problem facing free trade after the GFC has been

the increased cyclical and structural unemployment has seen a return to trade protection as a way of achieving full employment goal

the resurgence of nationalism and the unwillingness of people to buy goods from other countries

deflation has meant the low prices have made the costs of trade barriers less effective

the dominance of multinational corporation exploiting FTA and guaranteeing huge profits

in conclusion free trade can be argued to be

a powerful theory but less effective in the real world where economic power corrupts the ideal

an oversimplistic theory that has little relevance to the real world

a good idea and being accepted globally so in the near future free trade will guarantee a better world

a long term solution to the flaws of gar demand side policy

free trade is good

Authored by Jon Inge

Other, Specialty

11th - 12th Grade

Used 47+ times

AI Actions

Add similar questions

Adjust reading levels

Convert to real-world scenario

Translate activity

More...

Content View
Student View

20 questions

Show all answers

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

historically countries have relied upon trade protection to

maintain price stability

achieve external balance and full employment

boost GDP by exploiting less developed economies who can supply cheaper goods

to increase government revenue

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

the main types of trade protection have been

voluntary export restraints , voluntary cash flow remittances and retrocapital flows

financial barriers that make imports of lower quality

financial barriers that increase the cost of imports and lower production costs of domestic rivals

embargoes quota and quarantine

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

the main criticisms of tariffs and subsidies as forms of trade barriers are

they encourage inefficiency, increase real price either directly or indirectly and can create trade wars

that they don't work even when the tariff wall is high

they are no longer viable since the WTO has banned all trade protection across the globe

the money raised by tariffs rarely goes to the domestic industries that need bigger subsidies

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the past two decades with the dominance of the ........ school of economic thought and policy , free trade has become more popular

mercantile discountism

comparative advantage

neo classical theory with the emphasis on market forces and competition

keynesian economic policy with the emphasis on government intervention

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

the concept of free trade means

the reduction of tariffs and subsidies in countries so they are no longer as large as they were in the past

the removal of all trade barriers both direct and indirect to facilitate more efficient use of scarce resources

the free movement of all goods, service , ideas, people, money and technology across the globe

trade which is based on the cheapest prices due to the benefits of perfect competition and economies of scale

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

the theory of free trade is not a new one - it was created back in the the earliest times of economic thinking by

adam smith

Karl marx

David ricardo

john maynard keynes

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

the theory he promoted highlighted specialisation , economies of scale and the sale of the surplus on free global markets was called

marshall lerner condition

comparative advantage

pigovian equilibrium

J curve theory

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Continue with Google

Continue with Email

Continue with Microsoft

or continue with

Facebook

Apple

Others

By signing up, you agree to our Terms of Service & Privacy Policy

Already have an account?

Similar Resources on Wayground

20 questions

Songs & Song Artists

Quiz

•

3rd Grade - Professio...

20 questions

Ulangan Harian 4 (Kesejahteraan Pegawai)

Quiz

•

12th Grade

20 questions

MAJOR INGREDIENTS IN BAKING

Quiz

•

11th Grade

20 questions

Generic Basic 4 Stroke Engines

Quiz

•

KG - University

15 questions

Personal Relationships

Quiz

•

11th Grade

20 questions

Deaf Awareness/BSL

Quiz

•

5th Grade - Professio...

16 questions

Second Quarter Worksheet N0.2 Filipino sa Piling Larangan

Quiz

•

12th Grade

18 questions

Jessie

Quiz

•

1st - 12th Grade

Popular Resources on Wayground

21 questions

Continents and Oceans

Quiz

•

6th Grade

20 questions

Parts of Speech

Quiz

•

5th Grade

16 questions

Subject & Predicate

Quiz

•

5th Grade

25 questions

Multiplication Facts

Quiz

•

5th Grade

12 questions

Map Skills

Quiz

•

3rd Grade

22 questions

Continents and Oceans

Quiz

•

5th Grade

15 questions

Rounding Decimals

Quiz

•

5th Grade

20 questions

Brand Labels

Quiz

•

5th - 12th Grade

Discover more resources for Other

29 questions

Accounting Chapter 2

Quiz

•

9th - 12th Grade

free trade is good

historically countries have relied upon trade protection to

the main types of trade protection have been

the main criticisms of tariffs and subsidies as forms of trade barriers are

In the past two decades with the dominance of the ........ school of economic thought and policy , free trade has become more popular

the concept of free trade means

the theory of free trade is not a new one - it was created back in the the earliest times of economic thinking by

the theory he promoted highlighted specialisation , economies of scale and the sale of the surplus on free global markets was called

free trade is based on a number of key assumptions

if there were two countries and they used half their resources on either wheat or carsA 10 1B 1 15after free trade what would they be produce

under the theory of comparative advantage

Access all questions and much more by creating a free account

Similar Resources on Wayground

Popular Resources on Wayground

Discover more resources for Other

if there were two countries and they used half their resources on either wheat or cars
A 10 1
B 1 15
after free trade what would they be produce