Introduction Trade protection involves the use of policy instruments to restrict imports and protect domestic industries from foreign competition. While free trade promotes efficiency and global integration, trade protection is often used to support infant industries, preserve employment, or respond to unfair trade practices. Two of the most commonly used tools are tariffs and quotas. […]
Introduction International trade can be conducted through bilateral, regional, or multilateral frameworks. The multilateral framework is a cooperative arrangement among multiple countries to promote free and fair trade under a set of agreed rules. Institutions like the World Trade Organization (WTO) embody this framework, aiming to reduce trade barriers and ensure non-discriminatory treatment among trading
Explain multilateral framework of international trade. Explain its main features. Read More »
Introduction The concept of terms of trade (ToT) is essential in international economics, representing the rate at which one country’s goods are exchanged for another country’s goods. It helps assess a country’s trading strength and its welfare from international trade. Various forms of ToT exist, and many economists, including Raul Prebisch, have analyzed their implications,
Introduction International trade has long been analyzed through classical economic theories, and two of the most influential among them are the Ricardian theory of Comparative Advantage and Adam Smith’s theory of Absolute Advantage. These theories explain the reasons behind trade between countries and how they can benefit from specialization and exchange. Although both support free
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