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International Trade and International Finance Differ Because…

Question 10

Multiple Choice

International trade and international finance differ because…


A) World trade has increased substantially since the 1970s, while global financial flows have not.
B) Global financial flows have increased substantially since the 1970s, while world trade has not.
C) International trade occurs when one country's citizens produce a good that another country's citizens consume, while (with the exception of foreign direct investment) it is very difficult to think of examples from the financial sphere in which one country 'produces' money for another country to 'consume'.
D) None of the answers given are correct.

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