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WAEC Economics 1995 Question 40

Question 40

International Trade

International trade takes placed because of differences in

  1. A.production cost
  2. B.language
  3. C.government policy
  4. D.currency
  5. E.international boundary
Show the answer and explanation

Answer: A (production cost)

Explanation

Countries have different resources, so their costs of production differ; each gains by trading what it makes more cheaply.