A Complicating Factor in International Trade Is That

question 108

Multiple Choice

A complicating factor in international trade is that

• A)barter is the basis for trade between countries; money is not used.
• B)gold is used for payments; there are no international payments without gold.
• C)many other countries prefer to use the U.S.dollar as currency, causing monetary shortage in the United States.
• D)trade between countries requires different currencies rather than one currency.

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Definitions:

Exports

Goods or services produced in one country and sold to buyers in other countries.

Bushel

A unit of volume that is used in the United States for measuring agricultural commodities, such as grains.

Bananas

A type of fruit that is elongated and curved, with soft flesh rich in starch and covered with a rind, which may be green, yellow, red, purple, or brown when ripe.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.