International trade relies on which of the following assumptions?

Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.

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The presence of multiple currencies hinders global tradeProducts can move across borders more easily than resourcesResources have greater international mobility compared to productsA nation must always export more than it imports

Explanation

Option B is correct because international trade depends on the fact that goods are generally more transferable across countries than resources, which tend to be less mobile.

Practice related questions from the same subject.

1.According to G. MecDougall's research, what relationship did he find between labor productivity and export ratios?
2.Which of the following factors can contribute to dynamic gains from trade?
3.Under conditions of free trade, when would Canada fail to gain any benefits from trading with Sweden?
4.In a self-sufficient economy, where does the production point lie when the community optimizes its living standards?
5.In an economy, when a society achieves the highest possible standard of living, where is its production and consumption point located?

International trade relies on which of the following assumptions?

Explanation

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