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What Is Meant by the Free-Trade Doctrine? Give a Business

question 41

Essay

What is meant by the free-trade doctrine? Give a business example of how the production of two products would develop over time if this doctrine were correct.


Definitions:

Surplus

An amount of something left over when requirements have been met; an excess of production or supply over demand.

Being In The Black

A financial term indicating a company or individual is making a profit or has a positive balance.

Deficit

A shortfall or deficiency, such as in a budget or in the amount of a required substance.

Being In The Red

A financial term indicating that a business or individual is operating at a loss or spending more money than is being earned.

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