IGCSE Development Studies: Specimen Questions with Answers 21 - 22 of 98
Passage
Question 21 (6 of 7 Based on Passage)
Explanation
The Nations Which Can Benefit from Free Trade Are
- The exporters with competitive advantage
- The nations having workers who gain jobs in export industries.
- Nation having net economic welfare gain for society
- Consumers of nations who get benefits from cheaper prices.
- Domestic firms who see higher demand from consumers who now have more disposable income due to cheaper imports.
- The nation whose consumers see lower prices due to the competitive pressure of trade.
Question 22 (7 of 7 Based on Passage)
Explanation
S. No. | Free trade | Protectionism |
1. | The idea that countries benefit from trading with other nations | Protectionism is the idea that protecting the home market is necessary because other countries take advantage of a country. |
2. | The policy of trading nations without restrictions. | The policy of using tariffs or quotas to restrict trade |
3. | The concept that a nation has an “open economy” | The concept of protecting domestic workers and industries in the face of foreign competition. |
It fosters efficient market mechanism | It increases international competition and efficiency | |
5. | It strengthens absolute/comparative advantage | It allows freer movement of resources. |
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