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1. What defines International Trade?
A
Physical control to ban the imports of goods that are dangerous
B
The ability of a country to produce goods at a lower opportunity cost than another country
C
The exchange of goods and services between one country and another.
2. Advantages of International Trade
A
Variety of goods and services
B
Lower income and economic growth
C
Decreased world output
3. Given the same amount of resources, if one country can produce more of a particular commodity compared to another country, that country is said to have
A
an absolute advantage
B
a comparative
C
ratio of export price index to import price index
4. A tariff is
A
a tax on exports
B
a tax on imported goods
C
income received by exporting
5. Disadvantages of international trade
A
Better relationship between Trading partners
B
Increased world output
C
Credit risk