Who Gains from International Trade

question 59

Multiple Choice

Who gains from international trade?

• A)both the importing and the exporting nations
• B)neither the importing nor the exporting nations
• C)only the importing nation
• D)only the exporting nation
• E)The gains depend on which nation gets to keep the total revenue from the sale.

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Definitions:

Inflation

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Unemployment

The state of being without a job despite actively looking for work, measured as a percentage of the labor force.

Normative Economics

Normative economics deals with the evaluation of economic outcomes through the prism of what ought to be, recommending actions by what is deemed desirable or ideal.

Macroeconomics

The branch of economics that studies overall economic dynamics, including inflation, unemployment, and economic growth, on a national or global scale.