You can find answers to the questions in this article at www.hoddereducation.co.uk/economicreviewextras
Free trade is generally thought to make people better off. To understand why this is, imagine a world with just two islands — Cadbury and Jaffa. These islands have one citizen each, who needs to eat both chocolate and biscuits to survive. The resident of Cadbury can make eight chocolates and four biscuits by spending half of their time on each, whereas the resident of Jaffa can only make two chocolates and three biscuits. Cadbury is therefore better at producing both chocolates and biscuits than Jaffa. If the two islands do not trade, both make chocolates and biscuits, and consume what they produce.
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