International Trade Exists Because Countries

question 82

Multiple Choice

International trade exists because countries

• A) can make themselves better off through trade.
• B) want to be neighborly with each other.
• C) want to be political allies.
• D) want to improve diplomatic relations with each other.
• E) want to avoid war with each other.

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Definitions:

Externality

A consequence of an economic activity experienced by unrelated third parties; can be either positive or negative.

Resource Dependency

A theory in organizational studies that describes how external resources dictate the behaviors and strategies of organizations.

External Constituencies

Groups or individuals outside an organization that are affected by its decisions and actions, such as customers, suppliers, and the community.

Failure Theories

A set of theories explaining the conditions under which materials or components fail due to stress, fatigue, or other factors.