Overview
Trade liberalization is a crucial aspect of modern economics, promoting free trade by reducing barriers such as tariffs and quotas. This process can lead to significant benefits, including increased economic growth, lower prices for consumers, and a wider variety of goods available in the market. Ho...
Key Terms
Example: Countries may impose tariffs to protect local industries.
Example: A country may set a quota on the number of cars imported each year.
Example: Country A has a comparative advantage in producing textiles over electronics.
Example: Globalization has led to more international businesses operating across borders.
Example: Protectionism can lead to trade wars between nations.
Example: A trade surplus occurs when exports exceed imports.