Economics Balance Of Trade Questions
Trade liberalization generally leads to an improvement in the balance of trade. When countries remove trade barriers such as tariffs, quotas, and restrictions on imports and exports, it promotes free trade and increases the flow of goods and services between nations. This increased trade often results in a higher volume of exports and imports, leading to a more balanced trade relationship. Additionally, trade liberalization can enhance competitiveness, encourage specialization, and attract foreign investment, all of which contribute to a positive impact on the balance of trade.