3. Factors that influence international trade World trade has grown substantiall

Question

3. Factors that influence international trade

World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period.

Which of the following help to explain the increase in international trade and finance since the 1950s? Check all that apply.

-Better high-speed rail lines

-Increases in the global population

-Services such as web conferencing and teleconferencing that facilitate international meetings

-International trade agreements such as the North American Free Trade Agreement (NAFTA)

Explanation / Answer

-Better high-speed rail lines which facilitated easy and fast transportation of goods and services atr ease and also it became very easy to transport these goods and services to areas which were earlier bnot accessible. This encouraged trade and opened new markets for trade.

-Services such as web conferencing and teleconferencing that facilitate international meetings. Telecommunication facilities encouraged easy transaction facilities and communication between two trading partners which drastically reduced the cost of transactions.

-International trade agreements such as the North American Free Trade Agreement (NAFTA). The agreement reduced the barriers and facilitated unbiased trade between two trading partners.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.