International trade
A)Causes prices of products to rise because of the transportation costs.
B)Benefits the domestic industries that compete with the imported products.
C)Redistributes income from import-competing industries to export industries.
D)Reduces the level of income for export industries.

Question

Quizplus · Accepted Answer

International trade redistributes income from import-competing industries to export industries. This is because countries specialize in producing goods and services in which they have a comparative advantage and can produce more efficiently. This leads to increased competition in the domestic market, which may lead to a decline in the price of the products or services. It also benefits consumers, as they have access to a wider variety of products at lower prices. The other options are incorrect as transportation costs and domestic competition may not necessarily lead to higher prices or benefit domestic industries. International trade usually leads to an increase in income for the export industries.

International Trade