The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-It has been generally observed that most trade in the world occurs between a developed and a less-developed nation rather than between industrial or developed nations.

Quizplus · Accepted Answer

The statement is false. According to data from the World Trade Organization, a significant amount of trade occurs between industrialized nations. For example, in 2019, the top five exporters were China, the United States, Germany, Japan, and the Netherlands – all of which are considered industrialized nations. Developed nations also tend to trade more with each other due to similar levels of economic development and consumer preferences.