What are some disadvantages of domestic/internal/home trade?
Answers
Answered by
1
Answer:
The disadvantages of trade
Despite the benefits, trade can also bring some disadvantages, including: Trade can lead to over-specialisation, with workers at risk of losing their jobs should world demand fall or when goods for domestic consumption can be produced more cheaply abroad.
Explanation:
Trade lowers domestic prices; improves resource allocation through specialization; lowers profit margins of domestic producers and increases operating efficiency of domestic firms through increased competition.
Similar questions