Explain the Concept of Market Failure

question 47

Essay

Explain the concept of market failure.

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Definitions:

Free Trade Agreements

Pacts between countries to reduce trade barriers and encourage importing and exporting goods.

Ratify

To formally approve or confirm an agreement or treaty, making it officially valid.

World Trade Organization

An international body that deals with the rules of trade between nations, aiming to ensure that global trade flows smoothly, predictably, and freely.

Negotiations

The process by which two or more parties come together to discuss and reach a mutually beneficial agreement.