All of the Following,except One,are Reasons Why Complete Free Trade

question 98

Multiple Choice

All of the following,except one,are reasons why complete free trade may not be possible.Which is the exception?

• A)Transportation costs might exceed any cost differences between countries.
• B)Higher taxes in one country than another might exceed any cost differences.
• C)Free trade usually causes a reduction in international competition.
• D)Differences in languages and cultures might restrict the amount of trade.
• E)Cost differences between countries disappear as one country tries to totally specialize.

---

Definitions:

Periodic Payments

Regular payments made over a specified period of time, often related to loans or leases.

Annuity Table

A tool used to determine the present value of an annuity by providing factors to calculate payments or values at various rates and periods.

Future Value

The value of a current asset at a future date based on an assumed rate of growth.

Discount Periods

The time frame in which a discount is available for early payment of an invoice or debt.