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Moiseeva_F

Complete the following sentences to summarize the text above:

  1. The majority of economists believe in…

  2. Nations may have an absolute advantage in producing goods or services because of…

  3. This theory explains why…, but it does not explain the fact that …

  4. Economists who recommend free trade do not face…

  5. Tariffs and quotas are imposed in order to…

  6. Other non-tariff barriers include…

True-false questions:

  1. The comparative cost principle proposes that all nations will raise their living standards and real income if they specialize in the production of those goods and services in which they have the highest productivity.



  1. Nations may have an absolute advantage in producing goods or services because of factors of production (raw materials), climate, division of labour, economies of scale.



  1. It is a result of natural resources that the US leads in building aircraft, semiconductors, computers and software.



  1. The only reason for imposing tariffs and quotas is to protect the country’s strategic industries.



Viewpoint:

Why do you think many developing countries try to reduce protectionism and increase their international trade?