ECONOMICS
TRADE EXCHANGE AND INTERDEPENDENCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Risk of proprietary information theft
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Political risk
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Comparative cost
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World war
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Detailed explanation-1: -Cultural Differences. One of the major disadvantages of international trade is that, many times, cultural differences are never documented. There are unwritten rules of commerce in the country that are hard to uncover and can be even more difficult to solve.
Detailed explanation-2: -Disadvantages of International Trade That reduces jobs in domestic industries that can’t compete on a global scale. 4 That also leads to job outsourcing, which is when companies relocate call centers, technology offices, and manufacturing to countries with a lower cost of living.
Detailed explanation-3: -The correct option is C Creation of monopoly power.
Detailed explanation-4: -Rivalry among nations: Intense competition and eagerness to export more commodities may lead rivalry among nations. As a consequence, international peace may be hampered. Colonization: Sometimes, the importing country is reduced to a colony due to economic and political dependence and industrial backwardness.