When two countries trade with one another, it is most likely because
a. the wealthy people in each of the two countries are able to benefit, through trade, by taking advantage of other people who are poor.
b. some people involved in the trade do not understand that one of the two countries will become worse-off because of the trade.
c. the opportunity costs of producing various goods are identical for the two countries.
d. the two countries wish to take advantage of the principle of comparative advantage.
d
You might also like to view...
Marginal benefit is the benefit that your activity provides to someone else
Indicate whether the statement is true or false
Which of the following statements are NOT true about Eurocurrency markets?
A) Covered interest arbitrage in Eurocurrency markets is typically very profitable. B) Eurocurrency interest rate differentials are often in equilibrium with forward premiums or discounts. C) The Eurocurrency markets and forward markets fulfill similar roles for banks and firms today. D) All of these statements about Eurocurrency markets are true.