Question
Outline five reasons why some countries find it difficult to adopt a free trade policy with trading partners.
Answer
- Loss of revenue from the tariffs.
- Socio-cultural interference.
- Importation of inappropriate technology.
- Discourage development of infant industries due to stiff competition.
- It may lead to dumping / sale of inferior goods in a country.
- It may lead to persistent balance of payment deficit.
- Socio-cultural interference.
- Importation of inappropriate technology.
- Discourage development of infant industries due to stiff competition.
- It may lead to dumping / sale of inferior goods in a country.
- It may lead to persistent balance of payment deficit.
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