Practicing Success
International trade is the result of specialisation in production. It benefits the world economy if different countries practise specialisation and division of labour in the production of commodities or provision of services. Each kind of specialisation can give rise to trade. Thus, 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. |
Which of the following is NOT a reason for difference in national resources in the functioning of international trade ? |
Geological structure Transport Mineral resources Climate |
Transport |
Transport is not a reason for difference in natural resources, rest of the factors lead to difference in natural resources. |