by Simon Ng | Oct 8, 2015 | Economics Tuition, International Trade, JC Economics Notes, Macroeconomics |
A quota refers to the direct control of import demand, which will lower supply of imports, thus reducing quantity demand for imports. The restriction of the quantity of imported goods will create an artificial shortage that leads to the increase in price of the...
by Simon Ng | Oct 8, 2015 | Economics Tuition, International Trade, JC Economics Notes, Macroeconomics |
Purpose of comparative advantage The concept of comparative advantage explains how countries which are efficient in production can specialise and trade with countries which are inefficient so as to maximise total production and consumption, based on the concept of...
by Simon Ng | Oct 8, 2015 | Economics Tuition, International Trade, JC Economics Notes, Macroeconomics |
The factors that limit free trade can be seen in terms of the artificial barriers to trade, and natural barriers to entry. The artificial barriers to trade refers to protectionism, in which countries implement policies that prevent the import of foreign goods into the...
