In general, which of the following do not tend to increase trade between two countries?
A) linguistic and/or cultural affinity
B) historical ties
C) larger economies
D) mutual membership in preferential trade agreements
E) the existence of well controlled borders between countries

Question

Quizplus · Accepted Answer

Well-controlled borders tend to reduce trade as it makes it harder for goods and services to cross the border, thereby increasing transaction costs.

In General, Which of the Following Do Not Tend to Increase