A primary reason why nations conduct international trade is because:
A. Some nations prefer to produce one thing while others produce other things
B. Resources are not equally distributed among all trading nations
C. Trade enhances opportunities to accumulate profits
D. Interest rates are not identical in all trading nations
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A main advantage of specialization results from:
A. Economies of large-scale production
B. The specializing country behaving as a monopoly
C. Smaller production runs resulting in lower unit costs
D. High wages paid to foreign workers
International trade in goods and services is sometimes used as a substitute for all of the following except:
A. International movements of capital
B. International movements of labor
C. Domestic production of the same goods and services
Domestic production of different goods ang services
International trade is based on the idea that:
A. Exports should exceed imports
B. Imports should exceed exports
C. Resources are more mobile internationally than are goods
D. Resources are less mobile internationally than are goods
Increased foreign competition tends to:
A. Intensify inflationary pressures at home
B. Induce falling output per worker-hour for domestic workers
C. Place constraints on the wages of domestic workers
D. Increase profits of domestic import-competing industries
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