Question

The cost of fuel is on the rise. In what way will this affect global trade?

A)Exchange rates will decrease

B)Quotas will increase

C)Shipping expenses will increase

D)Tariffs will decrease

Answer 1

C)Shipping expenses will increase

Step-by-step explanation:

The price of oil varies according to various politicians, economists and when discoveries of new oil wells occur. Oil is the fuel used for transportation. When its value increases, all shipping costs also increase. This will cause an increase in the price of product shipments to end consumers. On the other hand, if oil prices fall, shipments will be cheaper for consumers.

Answer 2

The correct answer is C) shipping expenses will increase

Anything that needs to be shipped will gain an increase in price to compensate for the rise in oil price.