A Country Trades with Other Countries Because

question 89

Multiple Choice

A country trades with other countries because

• A)it can gain in production and consumption.
• B)it wants to improve foreign relations.
• C)its government can earn taxes on imported goods.
• D)it has an excess production capacity.
• E)its residents always prefer imported goods to domestic goods.

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Definitions:

Third Party

An individual or group besides the two primarily involved in a situation or transaction, often providing additional services or acting as an intermediary.

Authorized

Officially given permission or power to do something.

Actual Authority

The express and implied powers granted by a principal to an agent to act on the principal’s behalf.

Apparent Authority

The appearance or assumption of authority based on the actions or words of the principal, which a third party reasonably believes the agent has.