BA 372 Lesson 4 Assignment 8

BA 372 Lesson 4 Assignment 8 - Ashley B Hilliard July 5...

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Ashley B. Hilliard 258-10-0169 July 5, 2010-October 22, 2010 BA 372 Lesson#4, Assignment 8 1. What is the difference between the unilateral and multilateral approaches to achieving free trade? Give an example of each. A country can take one of two approaches to achieving free trade. It can take a unilateral approach and remove its trade restrictions on its own. Or a country can take a multilateral approach and reduce its trade restrictions while other countries do the same. In other words, it can bargain with its trading partners in an attempt to reduce trade restrictions around the world. 2. Consider a country that imports a good from abroad. For each of the following statements, say whether it is true or false. Explain your answer. A. "The greater the elasticity of demand, the greater the gains from trade." True, because the greater the response for the good from the public the more the country that exported the good stands to gain from exporting to this country. B. "If demand is inelastic, there are no gains from trade."
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BA 372 Lesson 4 Assignment 8 - Ashley B Hilliard July 5...

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