International trade equilibrium occurs where:
A)there is no further way to increase production of any commodity.
B)the excess supply curve intersects with the excess demand curve.
C)the total world import demand curve intersects with the total world export supply curve.
D)the amount produced in each nation is just equal to the amounts produced in every other nation.

Question

Quizplus · Accepted Answer

International trade equilibrium occurs where the total world import demand curve intersects with the total world export supply curve, indicating that the quantity demanded of goods and services worldwide is equal to the quantity supplied. It is the point where the world market is in balance, and there is no excess supply or demand. Therefore, choice C is the correct answer. The other choices are not accurate descriptions of international trade equilibrium.

International Trade Equilibrium Occurs Where