Question

Most companies would prefer to remain domestic if their domestic market were large enough.

A) TRUE
B) FALSE

Answer 1

The gains from international trade are more important to small countries because they have limited resources and a small domestic market.

Step-by-step explanation:

The gains from international trade are more likely to be relatively more important to small countries.

Small countries often have limited resources and may not be able to produce all the goods and services that their population needs. By engaging in international trade, small countries can access a wider range of products and services, boosting their economic growth and improving the standard of living for their citizens.

Additionally, small countries may have a small domestic market, which limits the potential for companies to grow and expand domestically. By engaging in international trade, companies in small countries can tap into larger foreign markets, allowing them to reach more customers and increase their sales and profits.