International Trade Can Be Mutually Advantageous Because It

question 95

Multiple Choice

International trade can be mutually advantageous because it

• A) encourages the adoption of sound institutions and policies.
• B) reduces the competitiveness of domestic industries and, thereby, makes it easier for the domestic producers to raise their prices.
• C) permits the trading partners to take advantage of reductions in per-unit costs in industries where economies of scale are important.
• D) does all of the above.
• E) does both a and c.

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Definitions:

Bailee

An individual or entity given temporary possession but not ownership of personal property by a bailor.

Bailed Property

Property given into the custody of another, termed the bailee, for a specific purpose under a contract.

Mutual Benefit

Refers to actions or policies that provide advantages or positive outcomes to all involved parties.

Reasonable Care

The standard of care that a reasonably prudent person would use in a similar situation to avoid harm to others.