Questions - 12
     
     
         1. Why do countries specialise in production?
     

    2. Give some examples of where Ireland specialises?
     

    3. What is meant by the law of absolute advantage. Distinguish it clearly from the law of comparative advantage.
     

    4. What are the main limits on specialisation?
     

    5.Explain what is meant by the terms of trade?
     

    6. Outline some additional reasons (other than absolute and comparative advantage) for trade.
     

    7. Why do countries try to limit trade?
     

    8. Outline some of the major ways of restricting trade.
     

     9. Is Ireland free to restrict trade?
     

    10. Distinguish a tariff from a quota.