It Is Not Possible for One Country to Sell All

question 11

Multiple Choice

It is not possible for one country to sell all products more cheaply than other countries for any length of time because the

• A)importing countries will react by constructing severe trade barriers.
• B)exporting country will find its cost of production decreasing relative to the importing country.
• C)depreciation of the importing countries' currencies ensures that trade will flow in both directions.
• D)depreciation of the exporting country's currency will lead to trade in both directions.
• E)the principle of absolute advantage would then be violated.

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Definitions:

Moving

The act of changing one's residence or business location.

Miles Apart

A measurement of distance in miles between two locations.

Miles Per Hour

A measure of speed indicating the number of miles traveled in one hour.

Elapsed

Elapsed refers to the amount of time that has passed since the beginning of an event or process.