In General,economic Studies on the Relationship Between Trade and Economic

question 132

Multiple Choice

In general,economic studies on the relationship between trade and economic growth suggest that:

• A)countries open to international trade display higher growth rates than those that close their economies to trade.
• B)comparative advantage theory does not hold much relevance in the modern world of international trade and open economies.
• C)modern economic trends tend to be influenced more by the absolute advantage theory than the comparative advantage theory.
• D)with the onset of free trade,rich countries are showing better dynamic gains in the efficiency with which resources are useD.