Which of the Following Is a Potential Obstacle to International

question 51

Multiple Choice

Which of the following is a potential obstacle to international diversification of portfolios?

• A)high transaction costs
• B)higher information costs
• C)both A and B
• D)none of the above

---

Definitions:

International Trade

The trade of products and services beyond international frontiers or territories.

Exporting

The process of selling and shipping goods or services from one country to another country.

Tariff

A tax imposed by a government on goods and services imported from other countries.

Imports

Imports are goods or services brought into one country from another for sale, usually regulated by the government with tariffs, quotas, or trade agreements.