In general, which of the following do NOT tend to increase trade between two countries?A) the existence of well controlled borders between countriesB) larger economiesC) mutual membership in preferential trade agreementsD) historical tiesE) linguistic and/or cultural affinity
Question
In general, which of the following do NOT tend to increase trade between two countries?A) the existence of well controlled borders between countriesB) larger economiesC) mutual membership in preferential trade agreementsD) historical tiesE) linguistic and/or cultural affinity
Solution
To determine which of the options do not tend to increase trade between two countries, we will analyze each option step by step:
A) The existence of well-controlled borders between countries: Well-controlled borders can actually facilitate trade by ensuring the smooth flow of goods and services between countries. Therefore, this option tends to increase trade rather than hinder it.
B) Larger economies: Generally, larger economies have a greater capacity to produce and consume goods, which can lead to increased trade between countries. Therefore, this option tends to increase trade.
C) Mutual membership in preferential trade agreements: When countries are members of preferential trade agreements, they often benefit from reduced trade barriers and increased market access. This can lead to an increase in trade between the countries involved. Therefore, this option tends to increase trade.
D) Historical ties: Historical ties between countries can create a sense of trust and familiarity, which can facilitate trade. Therefore, this option tends to increase trade.
E) Linguistic and/or cultural affinity: Linguistic and cultural affinity can enhance communication and understanding between countries, which can facilitate trade. Therefore, this option tends to increase trade.
Based on the analysis above, the option that does not tend to increase trade between two countries is A) the existence of well-controlled borders between countries.
Similar Questions
In general which of the following tend to promote the probability of trade volumes betweentwo countriesA) linguistic and/or cultural affinity.B) historical ties.C) sizes of economies.D) mutual membership in preferential trade agreements.E) All of the above.
. Trade between two countries can benefit both countries ifA) each country enjoys superior terms of trade.B) each country has a more elastic demand for the imported goods.C) each country has a more elastic supply for the exported goods.D) each country produces a wide range of goods for export.E) each country exports that good in which it has a comparative advantage.
Intra-industry trade will tend to dominate trade flows when which of the following exists?A) large differences between relative country factor availabilitiesB) small differences between relative country factor availabilitiesC) uneven distribution of abundant resources between two countriesD) homogeneous products that cannot be differentiatedE) constant cost industries
5) Suppose that a "small country" experiences growth strongly biased toward its export, clothA) this will tend to worsen the country's terms of trade.B) this will tend to improve the country's terms of trade.C) this will tend to worsen terms of trade for the country's trading partner.D) this will tend to improve terms of trade for the country's trading partner.E) this will have no effect on terms of trade for the country's trading partner
How does comparative advantage affect trade between countries?A.Countries with a significant comparative advantage are unlikely to trade with others.B.Countries typically only trade with partners that have a similar comparative advantage.C.Countries trade for goods produced by countries that have a comparative advantage.D.Countries cannot trade their goods unless they have a strong comparative advantage.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.