Question 42
International TradeInternational and inter-regional trade differ primarily because
- A.comparative advantage is relevant to the former but not to the latter
- B.products flow across national boundaries
- C.there are different resource supplies among countries of the world
- D.of regulation from GATT.
Show the answer and explanation
Answer: B (products flow across national boundaries)
Explanation
International trade crosses national borders, bringing different currencies, customs duties and laws; trade between regions of one country does not.