1.Utilization of Factors of Production:
Under Free Trade every country specialists in the production of those commodities in which it enjoys the maximum advantages.
2. Extensive Markets:
Since no restrictions are imposed on international trade, the commodities can be exported even to distant places in the world.
3. Geographical Division of Labor:
Free Trade results in the geographical division of labor which benefits all the countries of the world.
4. Benefits to the Consumers:
Under Free Trade the indigenous industries have to compete with the foreign industries, hence they try to sell their product at cheap prices cutting down their production cost.
5. Check Up Monopoly:
As the home industries have to face the competitors of foreign industries, they can not setup monopolistic combines to maximize their profit.
6. Improvement in Production Techniques:
Since the home industries have to face foreign competitors, they are forced to reduce their production cost be effective improvements in Production Techniques.
Under Free Trade every country specialists in the production of those commodities in which it enjoys the maximum advantages.
2. Extensive Markets:
Since no restrictions are imposed on international trade, the commodities can be exported even to distant places in the world.
3. Geographical Division of Labor:
Free Trade results in the geographical division of labor which benefits all the countries of the world.
4. Benefits to the Consumers:
Under Free Trade the indigenous industries have to compete with the foreign industries, hence they try to sell their product at cheap prices cutting down their production cost.
5. Check Up Monopoly:
As the home industries have to face the competitors of foreign industries, they can not setup monopolistic combines to maximize their profit.
6. Improvement in Production Techniques:
Since the home industries have to face foreign competitors, they are forced to reduce their production cost be effective improvements in Production Techniques.
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