Question

World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period.

Which of the following help to explain the increase in international trade and finance since the 1950s?
Choose all that apply:

a. International trade agreements such as the North American Free Trade Agreement (NAFTA).
b. An increasing number of affordable international flights.
c. Changes in property rights.
d. The widespread use of the Internet to conduct business.

Answer 1

The argument that best explains the increase in international trade and finance since the 1950s is:

a. International trade agreements such as the North American Free Trade Agreement (NAFTA).

Step-by-step explanation:

To understand our answer we need to analyze all the options. First of all, b) is wrong because the majority of the deliveries are done by sea. c) is also wrong because property rights are not changing that much, the 10% o the population still owns the majority of the wealth. d) is wrong also because the internet became available for businesses in the late 90s. However a) is correct because trade agreements allow countries to find better prices for products.