Economics Resources

International Trade

  • Do you agree that the policy of protecting a domestic market denies an economy the benefits of specialization and should therefore, not be adopted? 
  • Explain the terms specialization and diversification. 
  • Explain the theory of comparative advantage. 
  • To what extent does the theory of comparative advantage explain the pattern of trade between Singapore and the rest of the world?
  • Explain why specialization occurs. 
  • Discuss whether protection offers any advantages over specialisation.