A primary reason why nations conduct international trade is because ?
Correct answer: B. Resources are not equally distributed to all trading nations
- A. Some nations prefer to produce one thing while others produce another
- B. Resources are not equally distributed to all trading nations
- C. Trade enhances opportunities to accumulate profits
- D. interest rates are not identical in all trading nations
Explanation
Countries possess different quantities and qualities of land, labour, capital and natural resources, so trade lets them obtain goods that are relatively costly or impossible to produce at home. Different production preferences alone are not the primary economic basis of trade.
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