Given below are some statements. Read them carefully and choose the correct statement (s) from the given options.

Statement 1: Movement of goods has traditionally been seen as a substitute for the movement of labour.  

Statement 2: In international trade, foreign economic agents will accept a national currency only if they are convinced that the amount of goods they can buy with a certain amount of that currency will not change frequently.  

Both statements are correct.

The correct answer is Option 3:Both statements are correct.

Statement 1: Movement of goods has traditionally been seen as a substitute for the movement of labour. This is true. The idea is that international trade allows for the exchange of goods between countries, which can offset the need for labor mobility. If labor cannot move easily between countries, goods can be traded to meet demand and supply needs, thus substituting for the movement of labor.

Statement 2: In international trade, foreign economic agents will accept a national currency only if they are convinced that the amount of goods they can buy with a certain amount of that currency will not change frequently. This is true. For a currency to be accepted in international trade, foreign economic agents need to trust that it will maintain relatively stable purchasing power. Frequent changes in the value of the currency can lead to uncertainty and discourage its use.