Question

What role does competition play in international trade? It results in higher prices. It discourages imports. It drives down prices for consumers. It does away with the need for investment.

Answer 1

The correct option is "It drives down prices for consumers."

International trade, foreign trade or world trade is defined as the movement of goods and services through different countries and their markets. It is made using foreign exchange and is subject to additional regulations established by the participants in the exchange and the governments of their countries of origin. When carrying out international commercial operations, the countries involved benefit from each other by better positioning their products and entering foreign markets.

Answer 2

The role does competition play in international trade is that it drives down prices for consumers.

Global enterprise, foreign trade or world trade is described as the transportation of assets and assistance through various nations and their exchanges.

Further Explanation

International trade brings numerous important advantages to a nation, which involves the exploitation of a country's relative position, which indicates that trade promotes a nation to concentrate in offering only those assets and assistance which it can perform more efficiently, and at the most economical opportunity value.

Providing a conventional variety of goods and services for the national and exportation exchange indicates that a nation can afford at more eminent capacities, which contributes additional cost advantages in terms of economics of computation.

Trade enhances engagement and reduces world prices, which administers compensations to customers by increasing the purchasing authority of their revenue and manages a growth in customer surplus. Trade also collapses down handcrafted corners, which face competition from more cost-effective international firms.

The quality of assets and services is likely to progress as competition stimulates discovery, purpose and the utilization of new technologies.

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Answers Details

Grade; High School

Subject; History

Topic; Trade

Keywords

International trade, nation, advantages, technologies, opportunity, goods and service, advantage, innovation, domestic, monopolies.