Consider That in Country A, There Are Some Models of Cars

question 17

Essay

Consider that in country A, there are some models of cars available in the luxury segment produced by the domestic companies. Some more models are available in the same segment in country B as well. Explain with the help of suitable figures how the consumers in both the countries gain if these countries engage in free trade.

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Definitions:

Merchandise

Goods to be bought and sold, typically in a retail environment.

Incentive

A reward or benefit offered to motivate or encourage specific actions or behaviors from individuals or groups.

Competitors

Businesses or individuals that offer similar products or services and contend for the same customer base or market share.

Advertisements

Promotional messages or media used to introduce or promote products, services, or ideas to the public and stimulate demand.