ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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all transactions must be paid for with the euro
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all transactions must go through the World International Bank (WIB)
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The dollar is the most valuable currency in the world today and is always used in international trade
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a system to exchange currency since most countries use their own type of currency
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Detailed explanation-1: -Because every country does not use the same type of money, international trade requires a system for exchanging currencies between nations. Money from one country must be converted into the currency of another country to pay for goods in that country. This system is called foreign exchange.
Detailed explanation-2: -The five main reasons international trade takes place are differences in technology, differences in resource endowments, differences in demand, the presence of economies of scale, and the presence of government policies. Each model of trade generally includes just one motivation for trade.
Detailed explanation-3: -What Creates the Need for International Trade? International trade arises from the differences in certain areas of each nation. Typically, differences in technology, education, demand, government policies, labor laws, natural resources, wages, and financing opportunities spur international trade.
Detailed explanation-4: -International trade is the exchange of capital, goods, and services across international borders or territories. Trading-partners reap mutual gains when each nation specializes in goods for which it holds a comparative advantage and then engages in trade for other products.