GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A feasible effect of international trade is that a (an)
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Purely competitive firm in the home market becomes a monopolist
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Purely competitive firm in the home market becomes an oligopolist
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Oligopoly in the home market becomes a monopoly in the world market
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Monopoly in the home market becomes an oligopoly in the world market
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Explanation:
Detailed explanation-1: -International Trade refers to the exchange of products and services from one country to another. Differences in cost form the basis of trade. Differences in cost may be two types: (i) absolute cost difference, and (ii) comparative cost difference.
Detailed explanation-2: -International trade tends to reduce the prices of consumption goods, creating welfare gains for consumers in importing countries.
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