International trade equilibrium occurs where:
A) there is no further way to increase production of any commodity.
B) the home excess supply curve intersects with the home excess demand curve.
C) the total world import demand curve intersects with the total world export supply curve.
D) the amount produced in each nation is just equal to the amounts produced in every other nation.

Question

Quizplus · Accepted Answer

International trade equilibrium occurs where the total world import demand curve intersects with the total world export supply curve. This represents a situation where the quantity demanded by importers worldwide is equal to the quantity supplied by exporters worldwide. This balance ensures that both importing and exporting nations benefit from international trade. Choices A, B, and D do not accurately describe international trade equilibrium.

International Trade Equilibrium Occurs Where