StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Exam questions of macroeconomics - Essay Example

Cite this document
Summary
‘Free Trade’ is one of the market models in which there is no government imposed restrictions on the flow of trade in goods and services between different countries. The restrictions may take the form of taxes and tariffs and non-tariff barriers such as legislation and…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93% of users find it useful
Exam questions of macroeconomics
Read Text Preview

Extract of sample "Exam questions of macroeconomics"

Download file to see previous pages

Thus when there is trade barriers applied they protect the producers of goods and services from competing in the international market. It obstructs easy trade flows between countries. The importance of free trade in a globalized world economy can be seen from the following distinct advantages resulting from free trade. Free trade enables the countries to concentrate and increase the production of those goods and services in which they possess the comparative advantages in terms of economies in cost of production.

With the kind of specialization in different products the countries are able to enjoy the economies of scale and this largely reflects in the final prices to the international consumers. The indulgence in international trade results in the enlargement of the market for the firm. The increase in market size lowers the average production cost and enhances the productivity of the firms. When there is increase in the international trade the world economy also gets a boost towards growth. Another distinct advantage that is very important for the world economy is the improvement in efficiency of the production processes which leads to a proper allocation of available resources.

The more efficient use of resources automatically leads to increased productivity. A higher output in terms of goods and services is another distinct advantage resulting from free trade. The efficient allocation of resources in the individual countries contribute to the growth of the world economy as there will be an all round increase in production of goods and services which can flow between different countries without any restriction. The removal or reduction of tariffs and taxes will increase the benefits available to the consumers in different countries of the world.

Because of the expanded market there will be increased competition among trades which will improve the quality of the goods and services which

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Exam questions of macroeconomics Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Exam questions of macroeconomics Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from https://studentshare.org/miscellaneous/1546720-exam-questions-of-macroeconomics
(Exam Questions of Macroeconomics Essay Example | Topics and Well Written Essays - 3000 Words)
Exam Questions of Macroeconomics Essay Example | Topics and Well Written Essays - 3000 Words. https://studentshare.org/miscellaneous/1546720-exam-questions-of-macroeconomics.
“Exam Questions of Macroeconomics Essay Example | Topics and Well Written Essays - 3000 Words”, n.d. https://studentshare.org/miscellaneous/1546720-exam-questions-of-macroeconomics.
  • Cited: 1 times

CHECK THESE SAMPLES OF Exam questions of macroeconomics

Finance-Related Job in China

The course that cemented my interest in this field of study is International Economics and Trade, which raised in me a particular interest in macroeconomics.... I have always thought of the popular saying that “money runs the world”, and my take has been that if indeed this is true, then accountants and other financial experts run the world since they are the ones who handle money on behalf of people and organizations....
8 Pages (2000 words) Essay

Analytical tools in making decisions concerning increasing commodity price

The term economics is a broad discipline that consists of microeconomics and macroeconomics.... Thus in high demand the prices are in sky rocketing while in low demand the price are very low than normal (Zhang, 2005) macroeconomics This is a branch of economics that mainly the whole industry in the market rather than a specific entity like a company.... In macroeconomics, issues such as the GDP are keenly followed and how they are affected by factors such as price levels, unemployment and the rate of growth....
8 Pages (2000 words) Essay

Price Elasticity Of Demand

The paper "Price Elasticity Of Demand" gives a clear insight on the microeconomic element of price elasticity of demand.... It covers all the formulas that are used in computing price elasticity of demand, cross elasticity of demand and income elasticity of demand.... hellip; Price elasticity of demand can be defined as “a measure of responsiveness or sensitivity of consumers to price change”....
5 Pages (1250 words) Term Paper

Some Issues on the Macro- and Microeconomics

The assignment “Some Issues on the Macro- and Microeconomics” specifies such points as creativity and brainstorming, the problem-solving model and critical thinking, logical fallacies and fallacies of relevance, money and monetary policy, measuring social inequality, GDP and economic growth, etc....
6 Pages (1500 words) Assignment

GDP and the circular flow of income and expenditures

It mainly compares macroeconomics to microeconomics.... Also in macroeconomics, it is the amount purchased per unit time of goods that are not utilized but are employed in at a future date production.... The tutorial gives the big picture of what economics looks like....
4 Pages (1000 words) Research Paper

Micro and Macroeconomic Questions

The M-form as explained by Williamson relates to an organisational structure in which the firm is divided into several semi-independent units that are centrally controlled and guided by financial targets.... The multidivisional structure differs from other structures in that it… The whole organisation is controlled by the central management while most decisions are made at the semi-independent units....
5 Pages (1250 words) Essay

The Major Importance of Economics

macroeconomics analyzes the market behavior of individuals and firms to understand the decision-making process of firms and consumers.... The connection between the individual buyers and sellers is amply elaborated in microeconomics, it focuses on the basic theories of supply and demand and seeks the answers of certain questions like, how much to produce and how much to charge it?...
6 Pages (1500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us