Which statements are true about international trade?
Select all that apply.
A). International trade makes a greater variety of products available to consumers.
B). Consumers are not directly affected when nations place trade barriers on one another.
C). Restrictions on international trade are beneficial to American consumers.
D). International trade helps foster positive relationships with other nations.
To determine which statements about international trade are true, we need to analyze each option and evaluate its accuracy. Let's go through each statement:
A) International trade makes a greater variety of products available to consumers.
This statement is generally true. International trade allows countries to specialize in producing goods and services they have a comparative advantage in, which results in a wider variety of products being available to consumers. Different countries have different resources, skills, and technologies, which allows for a more diverse range of products to be available through international trade. Therefore, option A is correct.
B) Consumers are not directly affected when nations place trade barriers on one another.
This statement is not true. When nations place trade barriers, such as tariffs or quotas, it directly affects consumers. Trade barriers can lead to increased prices for imported goods, limited choices, and reduced availability of certain products. Consumers end up paying higher prices or have limited access to products and may also experience a decrease in product quality due to reduced competition. Thus, option B is incorrect.
C) Restrictions on international trade are beneficial to American consumers.
This statement is generally false. Restrictions on international trade, such as trade barriers or protectionist policies, often do more harm than good to consumers. Trade restrictions can lead to higher prices, limited choices, and reduced availability of imported goods. Opening up to international trade generally allows consumers to access a wider range of products at competitive prices. Therefore, option C is incorrect.
D) International trade helps foster positive relationships with other nations.
This statement is generally true. International trade plays a significant role in fostering positive relationships between nations. Engaging in trade helps promote mutual economic benefits and cooperation, encourages diplomatic dialogue, and can lead to the development of alliances and partnerships. Trade can also contribute to overall peace and stability by providing economic interdependence and reducing the likelihood of conflicts between nations. Therefore, option D is correct.
In summary, the true statements about international trade are:
- A). International trade makes a greater variety of products available to consumers.
- D). International trade helps foster positive relationships with other nations.