WAEC Economics 1997 Question 39

Question 39

International Trade

International trade is different from internal trade because of the

  1. A.manufactured goods involved
  2. B.currency differentials
  3. C.homogeneity of products
  4. D.heterogeneity of products
  5. E.uniformity of prices
Show the answer and explanation

Answer: B (currency differentials)

Explanation

Countries use different currencies, so international trade needs foreign exchange; internal trade does not.