An effect of international trade is
A) the increase in the average price of goods as the cost of transportation has to be included.
B) the transmission of ideas around the world.
C) that only countries that have absolute advantage in producing a good can participate.
D) that the United States has a trade surplus.

Question

Quizplus · Accepted Answer

International trade allows for the transmission of ideas, technologies, and cultural practices across borders. This can lead to increased innovation, productivity, and economic growth in participating countries. Additionally, international trade can lead to specialization and comparative advantage, where countries produce goods or services that they are relatively more efficient at producing, even if they do not have an absolute advantage. The cost of transportation is typically factored into the price of goods and does not necessarily result in an increase in the average price of goods. The United States may have a trade surplus with some countries and a trade deficit with others, depending on various factors such as consumer preferences, production capabilities, and economic policies.

An Effect of International Trade Is