Question

The most fundamental reason for the growth in world trade is probably due to which of the following?

A) cultural differences
B) the creation of free-trade areas
C) fluctuating exchange rates
D) the need for businesses to expand their markets
Correct Answer:

Answer 1

The most fundamental reason for the growth in world trade is D) the need for businesses to expand their markets. Advances in transportation and communication reduced the costs of moving goods around globe, making it easier for businesses to reach new customers in different countries.

Step-by-step explanation:

World trade involves the exchange of goods and services between countries. It fosters economic interdependence, allowing nations to access resources, expand markets, and promote specialization. World trade is influenced by international agreements, geopolitical factors, economic policies, and advancements in transportation and communication.

The most fundamental reason for the growth in world trade is the need for businesses to expand their markets. Advances in transportation and communication have significantly reduced the costs of moving goods around the globe, making it easier for businesses to reach new customers in different countries. Additionally, trade barriers between countries have fallen, promoting international trade and increasing opportunities for businesses to expand their markets.