Question 29
International TradeInternational trade and domestic trade are similar in all aspects except that
- A.transportation by land, water and air is involved
- B.goods are exchanged
- C.services are exchanged
- D.the same currency is used as medium of exchange
- E.specialization and increased consumption is encouraged.
Show the answer and explanation
Answer: D (the same currency is used as medium of exchange)
Explanation
Domestic trade uses one currency, but international trade involves different currencies, so this is where they differ.