International trade in goods and services tends to ?
Correct answer: D. Increase the amount of competition facing home manufacturers
- A. Increase all domestic costs and prices
- B. Keep all domestic costs and prices at the same level
- C. Lessen the amount of competition facing home manufacturers
- D. Increase the amount of competition facing home manufacturers
Explanation
Imports give domestic consumers alternatives to home-produced goods, while exports expose domestic firms to foreign competitors. This generally increases competitive pressure on home manufacturers rather than reducing it.
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