As new regional trading arrangements are formed,the opportunity cost of remaining outside:
A) increases
B) decreases
C) remains stable
D) none of these

Question

Quizplus · Accepted Answer

As new regional trading arrangements are formed, the countries that are not part of them incur a higher opportunity cost because they miss out on the benefits that the members enjoy such as lower trade barriers, increased market access, and access to new investment and business opportunities. Thus, remaining outside becomes more expensive and less attractive.

As New Regional Trading Arrangements Are Formed,the Opportunity Cost of Remaining