5 Short Answer Questions

User Generated

10fehyrf

Economics

Description

21.

In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.

22.

In complete sentence format, explain (a) two of the three types of trade barriers, (b) the reasons why countries sometimes establish trade barriers, and (c) the effects trade barriers sometimes have on the economy.

23.

In an essay of at least two well-developed paragraphs, analyze four of the factors that can affect economic development in some countries.

24.

In an essay of at least two well-developed paragraphs, explain why countries enter into free trade agreements. Provide the names of three trade agreements you have studied in this unit, and provide a brief description of each.

25.

In an essay of at least three well-developed paragraphs, (a) explain one economic difficulty for people traveling and conducting business between countries, and (b) describe the two exchange rate systems and how they function in alleviating these problems.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Running Head: 5 SHORT ANSWER QUESTIONS

5 Short Answer Questions
Name
Institution
Instructor

1

5 SHORT ANSWER QUESTIONS

2

21. Global benefits of international trade and multinational corporations (2)
Efficient allocation and utilization of resources is the first direct benefit that can be
derived from international trade. To attain competitive advantage in international trade,
participants are forced to focus on products that they produce more efficiently than their
competitors. The overall effect is creation of efficient allocation and use of resources globally.
Development of international trade has also helped to reduce wastage that is likely to occur if
surplus products produced in one country do not find market within the country they are
produced. Last but most importantly, international trade development has been a key factor
facilitating economic growth and development in many countries across the globe (Ball,
Geringer, Minor, & McNett, 2012).
Given the many benefits that are associated with development of international trade, it is
imperative that multinational corporations participate fully in international trade. One of the
advantages likely to be enjoyed by firms in international trade include the opportunity to gain
higher profits in foreign markets. With increasing competition domestic markets, participating in
international trade allows multinationals thrive better in new markets. Last not least,
multinationals are able to achieve efficiency by shifting operations to countries with low
production costs (Gopinath, Helpman, & Rogoff, 2014).
22. In complete sentence, explain:
(a) Two of the three types of trade barriers
Tariffs as one of the three trade barriers, refers to taxes that a government may impose on
imported products. The...


Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags