International Trade - Trade and Growth

 

Trade liberalisation affects growth in a number of ways. It gives producers access to bigger markets and allows them to increase the scale of their production. It gives consumers access to a wider range of goods at lower prices. It helps knowledge to circulate and encourages fi nance to seek new outlets. Trade policy also has an effect on growth by infl uencing the extent to which opportunities are seized. But trade liberalisation and good policy require a number of other conditions to be met to have the greatest impact, such as good infrastructures and a skilled labour force.

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Chapter 9 examines the factors that contribute to economic growth and how trade affects them.

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