(a) Two positive effects of free trade are:

• Increased efficiency and specialization based on comparative advantage, leading to lower prices for consumers.
• Enhanced economic growth through access to larger markets and technology transfer.

(b) Two non-tariff barriers to free trade are:

• Quotas limiting the quantity of imports.
• Subsidies to domestic producers, making foreign goods less competitive.

(c) Two arguments used to support trade restrictions are:

• Protection of infant industries to allow them to grow without foreign competition.
• Safeguarding national security by reducing dependence on foreign supplies for essential goods.

(d) Two factors that may cause imports to rise are:

• Appreciation of the domestic currency, making foreign goods cheaper.
• Increase in domestic income, boosting demand for foreign products.

(e) Two factors that may cause the foreign exchange rate to change are:

• Changes in interest rates; higher domestic rates attract foreign capital, appreciating the currency.
• Inflation differentials; higher domestic inflation depreciates the currency.

In Ghana, post-DDEP recovery in 2023-2024, BoG managed exchange rates via interventions, impacting import financing for banks like Ecobank Ghana, where trade restrictions on certain goods protected local industries under ECOWAS protocols.