Question

Describe any five ways by which trade can reduce inequalities between nations. 

Answer 1

Trade can reduce inequalities between nations in the following ways:

1. Fair Trade: Ensures poor countries receive fair prices for their goods, increasing income and reducing poverty.
2. Market Access: By reducing trade barriers, poorer countries can access larger markets, increasing exports and economic growth.
3. Job Creation: Trade boosts industries in developing nations, resulting in job creation and higher living standards.
4. Investment Attraction: International trade attracts foreign investment, which may help create infrastructure and promote economic growth.
5. Technology Transfer: Through trade deals, developing countries gain access to advanced technologies, which boosts productivity and economic potential.