Reasons For International Trade - SS3 Economics Past Questions and Answers - page 1
1
What is one of the main reasons for international trade?
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A
Access to a wider variety of goods and services
B
Promotion of domestic industries
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C
Increase in import taxes
D
Reduction in international cooperation
2
What does comparative advantage refer to?
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A
When countries produce only what they need
B
When countries specialize in the production of goods they are good at producing
C
When countries ban imports to protect their domestic industries
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D
When countries compete for the same resources
3
How can international trade lead to lower prices for consumers?
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A
By reducing competition
B
By increasing import taxes
C
By increasing production costs
D
By increasing competition and economies of scale
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4
How can international trade promote peaceful relations between countries?
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A
By fostering mutual interdependence
B
By reducing the need for negotiations
C
By increasing competition
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D
By increasing import taxes
5
What can increased economic growth lead to for countries?
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A
Reduced employment
B
Reduced investment
C
Increased employment, foreign exchange and investment
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D
Increased taxes
6
What is one of the benefits of international trade for consumers?
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7
How can international trade promote economic growth for countries?
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