A fundamental problem in international economics is how to produce
A) a perfect degree of monetary harmony.
B) an acceptable degree of harmony among the international trade policies of different countries.
C) a world government that can harmonize trade and monetary policies
D) a counter-cyclical monetary policy so that all countries will not be adversely affected by a financial crisis in one country.
E) a worldwide form of currency.

Question

Quizplus · Accepted Answer

International trade policies of different countries can vary widely, leading to conflicts and inefficiencies in the global economy. Finding a way to achieve an acceptable degree of harmony among these policies is a fundamental problem in international economics. The other options are either impractical (world government and worldwide currency) or not directly related to the problem of trade policy harmonization (counter-cyclical monetary policy and perfect degree of monetary harmony).

A Fundamental Problem in International Economics Is How to Produce