The Way in Which a Country Benefits from Trade Is

question 150

Multiple Choice

The way in which a country benefits from trade is that it can

• A)obtain goods at lower opportunity cost than producing them itself.
• B)exploit economies of scale in production and lower the cost of goods it produces.
• C)obtain a wider range of goods than it can produce for itself.
• D)All of the above are benefits.

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Definitions:

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, represented in the cash flow statement, that are not related to the entity's primary business operations.

Cash Outflow

Money or cash disbursed by a business for various purposes like operating expenses, investment, and financing activities.

Inventory Purchase

The acquisition of goods and materials that a company intends to sell or use in production, recorded as an asset on the balance sheet until sold.

Financing Activity

Transactions and events where cash is obtained from or repaid to investors and creditors, excluding those relating to operating and investing activities.