Which of the following is a result of trade creation?
A) The demand for goods tends to increase.
B) Purchasing power of consumers decreases.
C) Consumers have a limited choice for selection of goods.
D) Imported goods are seldom available at lower prices.

Question

Quizplus · Accepted Answer

Trade creation leads to an increase in the demand for goods as countries specialize in the production of the goods that they have a comparative advantage in and trade with each other. This creates a situation in which the availability and variety of goods tends to increase.

Which of the Following Is a Result of Trade Creation