Which of the Following Best Expresses the Benefit from International

question 158

Multiple Choice

Which of the following best expresses the benefit from international trade?

• A)With trade, each country can concentrate on producing those goods and services that it produces most efficiently.
• B)With trade, a country can increase its political involvement on a global scale.
• C)Increased U.S.trade would improve high-tech exports but not agricultural exports.
• D)Increased trade would increase U.S.exports and decrease U.S.imports.
• E)Increased trade implies that exports of goods and services will always equal imports of goods and services.

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Definitions:

Foreign Direct Investment

Funds deployed by an individual or company from one nation into the business ventures of another country, through the initiation of business activities or the acquisition of business properties.

Subsidiaries

Companies that are owned or controlled by another larger parent company, often operating independently but reporting to the parent corporation.

Immigration

The action of coming to live permanently in a foreign country.

Wage Increases

The act of raising the amount of money that employees are paid for their labor, typically as a result of negotiations or economic conditions.