Trade agreements are reciprocal in the sense that:
a. workers and firms suffer because of international trade
b. a rise in the prices of imports in one country leads to a decrease in the prices of imports in other countries.
c. when a country opens its domestic markets to imports, markets in other nations are opened to its exports.
d. when small companies in one country sell to larger markets in other countries, they gain economies of scale.
c
You might also like to view...
Suppose that the Federal Reserve issued bonds in the amount of $45 million and the reserve requirement was 10%, what would be the resulting change to the monetary base?
A) $45 million B) $450 million C) $4.5 million D) The bond issuance would not impact the monetary base only the money stock.
One advantage of a managed float exchange rate system compared to a floating exchange rate system is
A) it allows the exchange rate to reflect demand and supply in the market. B) there is no need for government intervention. C) it allows greater exchange rate stability. D) it eliminates the possibility of depreciation during a recession.