Respuesta :
Answer:
The weak growth in productivity in many economies of the European Union and emerging markets after the international financial crisis is raising concerns about growth prospects. The reduction of barriers to international trade and foreign direct investment could stimulate productivity and product.
Explanation:
In the past, rounds of international trade liberalization contributed to stimulate productivity and could do the same thanks to their wide geographical coverage, in terms of both the percentage of world GDP and world trade. However, the authorities must take care of the distributive effects of international free trade and take all measures to mitigate their impact on workers, in order to reap all the fruits that the removal of trade barriers can bring.
The liberalization of international trade can improve the allocation of resources between companies and sectors, increasing productivity and product. For example, the most productive companies usually subtract market share from the less productive companies. But there are two effects: More competition and greater variety and quality of inputs.
