Advantages and disadvantages of specialisation at a national level for consumers, firms and the economy.

Definition of globalisation. Role of multinational companies (MNCs) and the costs and benefits to their host and home countries. The benefits of free trade for consumers, producers and the economy in a variety of countries. Methods of protection: Tariffs, import quotas, subsidies and embargoes. Reasons for protection including infant industry, declining industry, strategic industry and avoidance of dumping. Consequences of protection: Effectiveness of protection and its impact on the home country and its trading partners.