Modern Trade Theory Contends That the Pattern of World Trade

question 139

Multiple Choice

Modern trade theory contends that the pattern of world trade is governed by

• A) mercantilism.
• B) supply conditions only.
• C) demand conditions only.
• D) the ability to separate the production process into tasks that can be done in different locations.

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Definitions:

Colonial Economy

Economic systems and practices in colonies, often characterized by exploitation of resources, labor, and the establishment of trade networks benefiting the colonial powers.

Townshend Duties

A series of British Acts passed in 1767 imposing taxes on the American colonies on goods such as tea, paper, and glass, leading to widespread protest.