Definitions World Trade Organization is an international body that sets the rules for global trading and resolves disputes between its member countries. It also hosts negotiations concerning the reduction of trade barriers between its member nations. A country...
The World Trade Organisation was set up on 1995 to promote trade liberalization. It has 153 member who set trade rules and ensure that they are followed. The WTO is the arbitrator of trade-related disputes. It has been criticised for being biased in favour of the US...
Free trade The benefits of free trade Countries are able to specialise in the production of goods and services that they are best at which means costs tend to be less. For instance, it is cheaper to grow tropical fruits in the warmer climates and import them than to...
Absolute and comparative advantages (HL) Absolute advantage: when a country can produce more of a good and service than another country with the same amount of resources. This is a result of productivity a country may be more efficient at producing certain goods than...