International Trade Does All the Following Except

question 51

Multiple Choice

International trade does all the following except

• A) allow a country to specialize in producing certain goods and services.
• B) reduce world output.
• C) allow a country to move to higher consumption levels.
• D) increase world output.

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Definitions:

Inventory Investment

The purchase of goods and materials for future sale or use, representing a business investment in stock.

Proprietorships

The simplest form of business organization owned by a single person, responsible for all the business’s operations and liabilities.

Partnerships

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Net Investment

The total amount spent by a company or economy on capital assets, minus depreciation.