According to Trade Theory

question 149

Multiple Choice

According to trade theory

• A) traders need to know the exchange rate between their own currency and that of the nation they are considering trading with, before they can decide whether it is advantageous to import, export, or buy locally.
• B) if a currency's exchange rate strengthens, then its exporters will no longer be able to profitably export their products.
• C) devaluation of a currency will automatically cause a nation's products to be price competitive in international markets.
• D) high-cost labor will automatically cause a country to be uncompetitive in export markets.
• E) devaluation of a country's currency will cause domestic prices to decrease.

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Definitions:

Boil

The process of heating a liquid to the temperature at which it turns to vapor.

Ideal Refrigerant

is a theoretical concept for a substance used in refrigeration that has optimal thermodynamic and physical properties, such as being non-toxic, environmentally friendly, and highly efficient in heat absorption and release.

Non-Combustible

Materials or substances that are incapable of igniting and burning, used in various safety applications to prevent fire.

Boil Temperatures

The temperature at which a liquid turns into vapor, which varies depending on the atmospheric pressure and the liquid's properties.