a) Explain, with the aid of an appropriate example, how it is possible for two countries to mutually benefit from trade on the basis of the law of comparative advantage. 

Question

b) Describe the main components of the balance of payments and explain what must occur for the current account to be in deficit.

c) Distinguish between tariffs, quotas and export subsidies and provide THREE motives which explain why policy makers may wish to implement such policies.

Leave an answer

Sorry, you do not have permission to answer to this question .