We Benefit from Trade If We Are Able to Obtain

question 71

Multiple Choice

We benefit from trade if we are able to obtain a good from a foreign country:

• A)that has a very low domestic demand.
• B)the production of which requires a steady supply of unskilled labor.
• C)by giving up less of other goods than we would have to give up to obtain the good at home.
• D)by giving up more of other goods than we would have to give up to obtain the good at home.
• E)that has a substantial number of substitutes in the domestic market.

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Definitions:

Foreign Currency Units

Foreign currency units refer to the various national currencies in which international transactions are denominated and financial statements of foreign operations are reported.

Exchange Rates

The value of one currency for the purpose of conversion to another, affecting how international transactions are recorded.

British Pounds

Refers to the official currency of the United Kingdom, known for its symbol £ and its code GBP.

Sales Credited

This refers to the revenue recorded when sales transactions are made, often impacting the seller's financial statements positively.