(a) What is trade liberalization? (b) Highlight the merits and demerits of liberalization?

      

(a) What is trade liberalization? (b) Highlight the merits and demerits of liberalization?

  

Answers


Benjamin
a) Liberalization is the opening up of domestic market to foreign competition through removal of trade regulations and protection

Merits
- Low prices
- Variety of goods and services
- High quality goods-Increased employment opportunities
- Increase in investment in the economy
- Acquisition of advanced technology


Demerits

- Importation of harmful goods
- Collapse of local industries due to unhealthy competition
- Increase in unemployment levels due to collapse of local industries
- Over-reliance on foreign countries
- Reduction in government revenue
- Balance of payment problem
Kalis answered the question on March 23, 2018 at 08:13


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