What is the MOST likely reason why neighboring nations engage in trade?
A) labor availability
B) similar tastes and preferences
C) proximity
D) shared membership in a free-trade area

Question

Quizplus · Accepted Answer

Proximity is the most likely reason why neighboring nations engage in trade as they are geographically close to each other, resulting in lower transportation costs, increased ease of communication and movement of goods and services, and shared cultural ties. While labor availability and similar tastes and preferences may play a role in trade, they are not as significant as proximity. Shared membership in a free-trade area may facilitate trade, but this would only apply to nations that are part of such an agreement.

What Is the MOST Likely Reason Why Neighboring Nations Engage