Answer to Question #122328 in Macroeconomics for Zahra Mohamed

Question

How can an economy benefit from the removal of agricultural protection?

Answer 1

• A country can benefit from exports. This is through exporting her finished which in turn earns the country foreign exchange which is used for economic development.

• A country can benefit from imports. This is through importation of essential goods such as food stuffs to supplement her population. On the other imported goods makes the products cheap to local consumers because it increases the supply thus lowering the prices of such commodities.

• Free agricultural trade can be of critical importance of trade agreements. A country can be able into trade agreements with other countries which can lead to economic developments within the economy.