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- Foundations Of Modern Trade Theoryeconomics-mcqs › foundations-of-modern-trade-theory
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What primarily determines the benefits a country gains from engaging in international trade?
Multiple choice question for Foundations Of Modern Trade Theory. Select an option, then review the explanation below.
Explanation
The advantages a country obtains from international trade depend largely on the difference between its autarky price (the price without trade) and the prevailing international terms of trade. This gap indicates how much better off the country is by participating in trade. The labor theory of value and the idea that a country must lose from trade are not accurate explanations of trade gains.
More Foundations Of Modern Trade Theory MCQs
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?