Which of the following best explains why export growth has outpaced the growth of domestic production during the last few decades?
A) Both world exports and domestic production have grown significantly over the past 30 years.
B) The cost to import products is generally higher than the cost to produce domestic products.
C) Growth in gross domestic product in most countries has steadily increased since 1970.
D) Advanced economies now source many of their consumable products from low-cost manufacturing nations.

Question

Quizplus · Accepted Answer

The primary reason export growth has outpaced domestic production growth is due to advanced economies sourcing a significant portion of their consumable products from low-cost manufacturing nations. This shift allows these economies to benefit from lower production costs abroad, thereby increasing the volume of exports from these low-cost countries.

Which of the Following Best Explains Why Export Growth Has