Question

International trade has always played a role in the U.S. economy. Is this role increasing or decreasing (in terms of exports and imports)?International trade is...A) decreasing because government policies facilitate trade.B) increasing because shipping costs have increased.C) increasing because tariffs are increasing.D) increasing because countries no longer enter into free trade agreements.F) increasing because communication is less expensive.

Answer 1

Answer: Option (F)

Explanation:

International trade tends to allow nations to expand their respective markets for commodities, goods and services which otherwise wouldn't have been available. As the outcome of the international trade, market tends to contain the greater competition, thus indirectly tends to have competitive prices, that further brings cheaper commodities home to consumer.

The vital point under this scenario is that within the past decade due to technological transformation the cost of communication has decreased drastically and thus has always impacted International trade.