Which of the Following Is True of International Trade

question 4

Multiple Choice

Which of the following is true of international trade?

• A)Trade makes it possible to consume better quality goods at a high price.
• B)Trade makes the domestic producers of import substitutes better off.
• C)Trade makes it possible to consume outside of the production possibility frontier.
• D)In the absence of trade,a country always produces at a point below the production possibility frontier.

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Definitions:

Hypercompetition

An extremely competitive business environment characterized by rapid and constant changes in technology, customer preferences, and market dynamics.

Attractive Industry

A sector of the economy that offers significant opportunities for investment, growth, and profitability, making it appealing to businesses and investors.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, often leading to less competition.

External Organizational Environment

Constitutes the outside forces, including economic, political, technological, and social factors, that affect an organization's operations.