What is considered to be the cornerstone of international trade?Multiple choice question.SpecializationTransportationTechnologyExchange rates

Which situation best illustrates how global trade promotes specialization?A.A country ensures that it will not become too reliant on trade by producing all of its most essential goods.B.A country tries to create a trade surplus by producing a wide variety of products that other countries want.C.A country sets strict limits on the amount of goods it can export to other countries in a single year.D.A country focuses on developing software instead of growing food because it can import food from its neighbors.

A country has a large number of highly advanced factories for producing cars. However, it does not have any sources of rubber to make wheels for the cars. Therefore, it has to import rubber from other countries. This situation best illustrates which factor that encourages global trade?A.Allowing for specializationB.Eliminating trade deficitsC.Acquiring natural resourcesD.Lowering opportunity cost

4. When a country both exports and imports a type of commodity, the country is engaged inA) inter-industry trade.B) an attempt to monopolize the relevant industry.C) increasing returns to scale.D) intra-industry trade.E) imperfect competition

International trade makes markets more competitive.

which of the following is a benefit of international trade