ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Governmental Control
|
|
|
Foreign Currency
|
|
|
Comparative advantage
|
|
|
Separation of Buyers and Producers
|
Detailed explanation-1: -The correct option is C Creation of monopoly power.
Detailed explanation-2: -Essential characteristics of foreign trade Exchange of different goods and services. Necessary regulations and measures. Currency flow reflected in the exchange rate. Encourage the production of a country.
Detailed explanation-3: -Key Takeaways Comparative advantage is an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners. The theory of comparative advantage introduces opportunity cost as a factor for analysis in choosing between different options for production.
Detailed explanation-4: -International trade is referred to as the exchange or trade of goods and services between different nations. This kind of trade contributes and increases the world economy. The most commonly traded commodities are television sets, clothes, machinery, capital goods, food, raw material, etc.