Practicing Success

Target Exam

CUET

Subject

Geography

Chapter

Fundamentals of Human Geography: International Trade

Question:

International trade is based on the principal of:
1.Principle of comparative advantage
2.Complimentarity and Transferability of goods and services
3.Individual benefits in trading

Options:

Only 1 and 2

Only 2 and 3

Only 1 and 3

All of the above

Correct Answer:

Only 1 and 2

Explanation:

International trade is based on the principle of comparative advantage, complementarity and transferability of goods and services and in principle, should be mutually beneficial to the trading partners.