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Questions and Answers
What is the main reason for trading with other nations?
What is the main reason for trading with other nations?
- To increase competition within the country
- To acquire goods that are not locally available (correct)
- To reduce global market diversity
- To promote national self-sufficiency
Why is Canada mentioned as a potential market of only 38 million customers?
Why is Canada mentioned as a potential market of only 38 million customers?
- To discourage international trade with Canada
- To highlight Canada's limited purchasing power
- To contrast it with the global market potential of 7 billion customers (correct)
- To emphasize the challenges of operating in a small market
What concept refers to the ability of a country to produce goods at a lower opportunity cost than another country?
What concept refers to the ability of a country to produce goods at a lower opportunity cost than another country?
- Comparative advantage (correct)
- National self-sufficiency
- Absolute advantage
- Import substitution
What is the primary role of multinational corporations in global markets?
What is the primary role of multinational corporations in global markets?
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Why do countries engage in trade even if they are technologically advanced?
Why do countries engage in trade even if they are technologically advanced?
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What does exporting mean in the context of international trade?
What does exporting mean in the context of international trade?
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What is one of the pros of free trade mentioned in the text?
What is one of the pros of free trade mentioned in the text?
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What can be a consequence of intense competitive pressure on domestic companies?
What can be a consequence of intense competitive pressure on domestic companies?
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What is the theory of absolute advantage based on?
What is the theory of absolute advantage based on?
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What has been a recent trend in international trade, as mentioned in the text?
What has been a recent trend in international trade, as mentioned in the text?
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