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Chapter 10: Q 41. (page 267)

Will nations that are more involved in foreign

trade tends to have higher trade imbalances, lower trade imbalances, or is the pattern unpredictable?

Short Answer

Expert verified

Actually, pattern of trade is incalculable.

Step by step solution

01

Step 1. Definition

Foreign trade is the give and takes of goods or services between international borders and regions which we call imports and exports.

02

Step 2.

Foreign trade is generally unpredictable. Trade pattern depends on a various variety of factors which are also different like geography, economy, history, etc. because these factors are not fixed for all nations that’s why trade is also unpredictable.

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