GK
WORLD GEOGRAPHY
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Import goods and services that they need
|
|
|
Increase dependence on foreign sources of energy like oil
|
|
|
Import goods and services that other countries can produce at a lower cost
|
|
|
Export goods and services that can be marketed for a profit
|
Detailed explanation-1: -A country’s balance of trade is defined by its net exports (exports minus imports) and is thus influenced by all the factors that affect international trade. These include factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.
Detailed explanation-2: -Factors influencing international trade Exchange rates, competitiveness, growing globalization, tariffs and trade bariers, transportation costs, languages, cultures, various trade agreements affect companies by its decision to trade internationally.
Detailed explanation-3: -Trade contributes to global efficiency. When a country opens up to trade, capital and labor shift toward industries in which they are used more efficiently. Societies derive a higher level of economic welfare.