Economics questions. Please Help me.?

Question

how are countries affected economically by international trade.

What are the pros and cons of countries that choose free trade or trade restrictions?

Thanks, in advanced.

Answer 1

they are affected when you have huge trade deficits we are buying more a lot more than what we are sellingdollar for dollarit puts people out of work in this country obama wants this practice stopped mc cain thinks it should be left as it is in other words he dosent give a damed about the working oeople in the us vote for obaba

Answer 2

advantages of free trade:

- obtain goods and services they couldnt produce themselves

- allows countries to specialize

- encourages an efficient allocation of resources

-international competitiveness of local firms will improve

- encourages innovation and the spread of new technology

- leads to higher living standards as a result of lower prices and increased choice. also higher rates of economic growth and increased real incomes.

disadvantages:

- increase in short term unemployment may occur as --imports become hard to compete with

-new industries may find it hard to establish themselves

production surpluses may be dumped which can harm domestic industries

advantages of trade restrictions might be

- provides employment

- self suffieciency

- protects domestic employment [however this is not an economically sound reason]

disadvantages

-dont get to reap the benefits of free trade!!

- other countries may impose restrictions on you