Which of the Following Is a Principle of International Trade

question 7

Multiple Choice

Which of the following is a principle of international trade?

• A)German workers will not work without Union representation.
• B)International trade hurts many countries since it is basically unfair to developing nations.
• C)International trade increases worldwide production by specialization.
• D)Exchange rates are determined by the Hague Convention.
• E)Bribery drives up prices in world trade.

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Definitions:

Economic Growth

An increase in a country's output of goods and services over time, typically measured by changes in real GDP, indicating improvements in living standards and economic health.

Capital

Assets or resources that are available for use in the production of further assets or goods.

Entrepreneurial Ability

The skill or capacity to identify opportunities, create new businesses, and innovate new products or services in the marketplace.

Opportunity Cost

represents the value of the next best alternative forgone as a result of making a decision.