Should international transportation costs decrease, the effect on international trade would include
A) an increase in the total volume of trade.
B) a smaller gain from trade for exporters.
C) a decline in exported goods.
D) a decrease in the level of specialization in production.

Question

Quizplus · Accepted Answer

If transportation costs decrease, it becomes more profitable for countries to engage in international trade, leading to an increase in the total volume of trade.

Should International Transportation Costs Decrease, the Effect on International Trade