Question

Without foreign trade, many of the things we buy in the United States might cost more or not be available to our consumers.

True

False

Answer 1

This is a true statement

Answer 2

The given statement is true.

Step-by-step explanation:

Foreign trade enables better risk management as sole focus on domestic market can increase the risk of political, economic, environmental downturns. It also helps in diversifying the risks to other markets.

It also helps in cash management as payment is made immediately on trading goods. The fluctuations in US dollar help in making profits. For example, if the US dollar decreases the exports will be more as other countries will benefit from lower USD value.