International trade will ______ the price of a nation's abundant resources and _____ the price of a nation's scarce resources
A) increase; increase
B) decrease; decrease
C) decrease; increase
D) increase; decrease

Question

Quizplus · Accepted Answer

International trade typically leads to an increase in demand for a nation's abundant resources, which in turn increases their price. On the other hand, international trade reduces demand for a nation's scarce resources, as they may be available at a lower cost in other markets, which therefore decreases their price.

International Trade Will ______ the Price of a Nation's Abundant