Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
4Activity
0 of .
Results for:
No results containing your search query
P. 1
Free Tr. vs Protection

Free Tr. vs Protection

Ratings: (0)|Views: 105|Likes:
Published by a_mohapatra55552752

More info:

Published by: a_mohapatra55552752 on Nov 12, 2009
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less

07/22/2010

pdf

text

original

 
 
Free Trade. Vs ProtectionDr. Mrutyunjay Dash
 
 
Free Trade
It refers to a condition of international trade, when all kindsof artificial controls on international trade, such as tariffs,quotas, etc. are absent.Under free trade, the distinction betweendomestic trade and international trade disappears.Arguments in Favour of Free Trade:
Optimum allocation of Resources
Under free trade, every country specialises only in theproduction of those goods in which it has comparativeadvantage. This leads to proper and most efficient use of productive resources of the world.Technical Reasoning:To avoid misutilisation of resources on the production of those items over which the country has comparativedisadvantage.
 
 
Optimisation of Consumption
Free trade helps the trading countries to secure the optimisationof consumption. In the absence of international trade, acountry’s domestic consumption is limited to its
 production possibilities.
But through international trade, the consumption possibilitiescan expand
beyond 
its
 production possibilities
.
 Benefits to Consumers:Free trade also benefits the consumers by enabling them toenjoy the large variety of foreign goods which their owncountry cannot produce.
 Economic Development :
 Encourages specialisation and division of labour 
 Stimulates healthy competition
 Increases skills, technical know-how 
 Makes available necessary raw materials, machinery and  foreign capital.

Activity (4)

You've already reviewed this. Edit your review.
1 hundred reads
tropical2007 liked this
adt09 liked this
Nur Al Ahad liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->