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4 International trade and the global economy

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Question 34

Firms in Country C sell machine tools at home and overseas. They improve the reliability of the tools and their after-sales service, while prices relative to overseas rivals remain unchanged. Which change in Country C's trade is most likely to follow?

[1]
A

Exports of machine tools are unchanged and imports of machine tools fall.

B

Exports of machine tools rise and imports of machine tools are unchanged.

C

Exports of machine tools rise and imports of machine tools fall.

D

Exports and imports of machine tools are both unchanged.

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4 International trade and the global economy Questions

  1. GCSE
  2. /Economics
  3. /4 International trade and the global economy

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