Advantages and disadvantages of foreign trade. - SS1 Commerce Past Questions and Answers - page 1
Which of the following is an advantage of foreign trade?
Increased market opportunities
Dependency on foreign sources
Trade imbalances
What does foreign trade contribute to in terms of economic growth and development?
Increased unemployment
Reduced investment
Employment opportunities and revenue generation
What is one disadvantage of foreign trade?
Equal distribution of benefits
Vulnerability to external factors
Reduced access to resources
How does foreign trade contribute to the exchange of knowledge and technology?
By limiting innovation and technological advancements
By hindering productivity and competitiveness
By facilitating the exchange of knowledge and technology
What can trade imbalances lead to?
Increased foreign exchange reserves
Economic stability
Challenges in maintaining a stable economy
Explain one advantage of foreign trade in your own words.
Foreign trade provides increased market opportunities for businesses, allowing them to access larger customer bases beyond their domestic boundaries and potentially leading to increased sales and profits.
Name one potential disadvantage of foreign trade.
One potential disadvantage of foreign trade is the vulnerability to external factors such as global economic fluctuations, geopolitical tensions, or changes in international trade policies, which can disrupt trade flows and negatively impact businesses and economies.