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