Some countries have become highlydependent on one or more exportcommodities.

Analyse why a country’s exports may decrease.

Why tradeResource EfficiencyAccess to a Variety of Goods and ServicesEconomic GrowthCost SavingsSpecialization and Comparative AdvantageTechnology TransferIncreased Income and Standard of Living.Diversification of Risks.Global Cooperation and Diplomacy.Job Creation

What does a policy of export-oriented industrialization encourage most?Group of answer choicesthe consumption of high-tech foreign exports to fuel domestic industrializationmanufacturing for foreign consumption to promote domestic economic developmenteconomic development by way of foreign direct investmentdeveloped countries to reduce tariff barriers on developing countries’ exports

A country engaging in trade according to the principles of comparative advantage gains fromtrade because itA) is producing exports indirectly more efficiently than it could alternatively.B) is producing imports indirectly more efficiently than it could domestically.C) is producing exports using fewer labor units.D) is producing imports indirectly using more labor units.E) is producing exports while outsourcing services.

. 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.