If the World Price of a Product Rises Relative to the Domestic

question 44

Multiple Choice

If the world price of a product rises relative to the domestic price in a trading nation, then, for that product,

• A) exports and imports will increase.
• B) exports and imports will decrease.
• C) exports will increase and imports will decrease.
• D) imports will increase and exports will decrease.

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Definitions:

Tide Laundry Detergent

A leading brand of laundry detergent made by Procter & Gamble, known for its cleaning power and effectiveness in removing stains and dirt from clothing.

Febreze Scents

A range of fragrance products created by Febreze to eliminate odors and freshen the air in various living spaces.

Co-branding

A marketing partnership between two or more brands that combine their products, services, or identities to increase recognition and value.

Single Product

Relates to a business strategy focused on the development, production, and sale of only one particular product, often to ensure quality and efficiency.