ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increases the chance of conflict because of competition
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increases the chance of conflict because of economic rivalry
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decreases the chance of conflict because of economic advantages
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decreases the chance of conflict because of floating exchange
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Detailed explanation-1: -Economists see all forms of trade as equally advantageous. Second, many noneconomists believe that exports are better than imports for the economy. Economists believe that all trade is good for the economy.
Detailed explanation-2: -Trade between two agents or countries allows the countries to enjoy a higher total output and level of consumption than what would have been possible domestically. Canada and Mexico can each specialize in the good they have a comparative advantage in and exchange with one another.
Detailed explanation-3: -Traditional economic theory assumed that goods are traded between countries, but that factors of production (e.g., labor, capital, and technology) and services are not traded from country to country.
Detailed explanation-4: -More Job Opportunities. Expanding Target Markets & Increasing Revenues. Improved Risk Management. Greater Variety of Goods Available. Better Relations Between Countries. Enhanced Company Reputation. Opportunities to Specialize. 31-Aug-2022