Factors Impacting International Trade

Immigration laws, citizenship of labour, and government restrictions on international capital flows

Economic, fiscal, tariff, and monetary policies

Between different political units

<p>Domestic trade is among us, international trade is between us and them</p> Signup and view all the answers

<p>The increased value which results from exchanging what is wanted less for what is wanted more</p> Signup and view all the answers

<p>Gains from trade</p> Signup and view all the answers

<p>By enabling access to a variety of products at competitive prices.</p> Signup and view all the answers

<p>Access to better technology and know-how not available domestically.</p> Signup and view all the answers

<p>Trade promotes economic growth in less developed countries.</p> Signup and view all the answers

<p>Commodities that are scarce in supply or not available domestically.</p> Signup and view all the answers

<p>By importing goods that it does not produce efficiently.</p> Signup and view all the answers

<p>To avoid missing out on goods that could be produced more efficiently elsewhere.</p> Signup and view all the answers

<p>Trade enables an exporter to sell goods in a large number of markets and choose where to sell for a better price.</p> Signup and view all the answers

<p>Terms of Trade (TOT) refer to the rate at which the goods of one country exchange for the goods of another. TOT express the relation between export prices and import prices.</p> Signup and view all the answers

<p>Net Barter Terms of Trade is the ratio of export and import prices. It is also known as Commodity TOT and was introduced by Prof. Viner.</p> Signup and view all the answers

<p>Trade leads to an increase in the size of output as entrepreneurs produce for both domestic and international markets, resulting in the generation of employment.</p> Signup and view all the answers

<p>Trade enables entrepreneurs to diversify risks by selling products in international markets when there is low demand domestically.</p> Signup and view all the answers

<p>When export prices exceed import prices, it is a favorable TOT. Conversely, when import prices are higher than export prices, it is an unfavorable TOT.</p> Signup and view all the answers

<p>Nurse the baby, protect the child, free the adult.</p> Signup and view all the answers

<p>To achieve a balanced growth of industries and self-sufficiency.</p> Signup and view all the answers

<p>By increasing import prices, leading to domestic production and employment generation.</p> Signup and view all the answers

<p>Adopt a restrictionist trade policy.</p> Signup and view all the answers

<p>No economy can be fully self-sufficient and it contradicts the Comparative Cost Theory.</p> Signup and view all the answers

<p>By shielding them with temporary protection until they are competitive.</p> Signup and view all the answers

<p>Tariffs are considered a fiscal tool of protection because they are taxes levied on both imports and exports to protect domestic industry.</p> Signup and view all the answers

<p>Import tariffs make imports more expensive.</p> Signup and view all the answers

<p>Tariffs are levied for various reasons including protecting domestic industry, generating revenue for the state, improving terms of trade, and retaliating against protectionist countries.</p> Signup and view all the answers

<p>Tariff rates need to be high to protect domestic industry by making imported goods more expensive.</p> Signup and view all the answers

<p>Tariffs are levied to protect domestic industry, earn revenue for the state, improve a country’s terms of trade, and retaliate against protectionist countries.</p> Signup and view all the answers

<p>Tariffs tend to reduce the volume of imports by making them more expensive.</p> Signup and view all the answers