Protectionism Definition
Protectionism is whereby nations aim to prevent or restrict the supply of goods coming into the country. In other words, it employs various tools to prevent international competition competing with local businesses.
International Trade
Absolute Advantage Definition
Absolute advantage is where a nation is more efficient at making a product than another. In other words, it requires fewer resources to make a final good or service.
Barriers to Entry Definition
A barrier to entry is simply an obstacle that new businesses face when entering the market. This can come in the form of high start-up costs, or strong branded competitors.
Comparative Advantage Definition
What is Comparative Advantage Comparative Advantage Examples Absolute Advantage vs Comparative Advantage How to Calculate Comparative Advantage Comparative Advantage Definition WRITTEN BY PAUL BOYCE | Updated 7 November 2020 What is Comparative Advantage Comparative advantage is where a nation is able to produce a product at a lower opportunity cost. In other words, a nation …
The Importance of Free Trade
True free markets don’t exist anywhere in the world. This is because free markets and free trade go hand in hand. There exists no country that has free trade with every other. Although Hong Kong doesn’t operate a tariff regime, it is unable to export its products and services to others free of tariffs. Free market ideologies such as neoliberalism are attacked and concluded that they have failed.
