Which of the Following Statements About Trade Is False

question 6

Multiple Choice

Which of the following statements about trade is false?

• A) Trade generates political, economic, and social interdependencies between nations.
• B) Most countries export more of the goods they produce than they consume at home.
• C) Trade as percentage of world GDP is higher in 2016 than it was in 1990.
• D) Increased trade reflects the internationalization of production.

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Definitions:

Market

A system or place where parties engage in exchange of goods, services, or information, characterized by supply and demand.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction in which they had no direct involvement.

New Technologies

Innovations or advancements in technology that can lead to improved processes, products, or capabilities, often contributing to economic growth and efficiency.

Positive Externality

A positive outcome experienced by a person who did not intentionally seek out that advantage, frequently tied to public goods or services.