Question

A. price and income elasticities of demand;
B. empirical evidence from Newly Industrialised Countries of South East Asia;
C. protectionism and its consequences;
D. an argument on free trade vs protectionism.

Answer 1

A.Price elasticity of demand means the degree of responsiveness of change in quantity demand to change in price.
It is the ratio of change in quantity demand to change in price.
It means how much the quantity demanded changes as there is change in the price of the commodity.
Generally price elasticity of demand is of five types.
1.Perfectly elastic demand
2.Perfectly inelastic demand
Unitary elastic demand
3.More than unitary elastic demand
4.Less than unitary elastic demand
Income elasticity of demand means the degree of responsiveness of change in quantity demanded to change in income.
It is the ratio of change in quantity demand to change in income.
It means how much the quantity demand changes as there is change in income.
B. Newly industrialized Countries Of South East Asia shows a positive development in every aspect because these countries are the new markets for all the developed Nations; industrialisation in these countries are just like a profitable project for all the investors existing worldwide.
South East Asian countries are good for business prospects and therefore it is good to enhance the policies which are based on reconstructive structure and machine based production.
C. Protectionism means to give protection to the domestic Industries by the government from the imported goods and from the Global companies.
The main consequences of these industries are like they provide a self sustainability for the nation and they provide self-reliance ability to the nation.
It enhances the ability to produce goods based on the structure and it is also important to provide a self stability of production and development within the domestic Territory of the country.
But it will create our responsibility and a burden for the government because for protectionism means to give support to the domestic industries for the production and for the ability to export goods to the other Nation.
D. Free trade means to trade to any Nation and to accept goods and services from any Nation it is a true concept of globalisation where there is no restriction of export and import of goods from any countries but protectionism means to only self guard domestic Industries from the Global competition it is important for the domestic sellers and producers and that's why it is important Concept for the development of the nation and to reduce the dependency on the other Nations.