Trade Policies and the UK's International Trade (AQA A-Level Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Comparative advantage
Comparative advantage
Producing goods at lower opportunity cost than other countries
Tariffs (import duties)
Tariffs (import duties)
Taxes imposed on imports from other countries
Quotas
Quotas
Physical limits on quantities of imported goods allowed
Infant industries argument
Infant industries argument
Protect new industries while they develop economies of scale
Consumer surplus
Consumer surplus
Difference between what consumers willing to pay vs. actually pay
Producer surplus
Producer surplus
Difference between price received & minimum willing to accept
Dumping
Dumping
Selling surplus goods at price below cost in overseas markets
Deadweight loss from tariff (areas A + C)
Deadweight loss from tariff (areas A + C)
Pure economic inefficiency not captured by anyone
UK trade deficit with EU (2020)
UK trade deficit with EU (2020)
£49.4 billion
UK's largest export category (2020)
UK's largest export category (2020)
Machinery and transport equipment (£113 billion)