International trade is based on the idea that ?
Correct answer: D. Resources are less mobile internationally than are goods
- A. Exports should exceed imports
- B. imports should exceed exports
- C. Resources are more mobile internationally than are goods
- D. Resources are less mobile internationally than are goods
Explanation
Goods can cross borders more easily than most productive resources such as labour and capital, which remain relatively immobile internationally. This difference allows trade to substitute partly for the movement of resources.
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