PrepTest 57, Section 3, Question 3
Although free international trade allows countries to specialize, which in turn increases productivity, such specialization carries risks. After all, small countries often rely on one or two products for the bulk of their exports. If those products are raw materials, the supply is finite and can be used up. If they are foodstuffs, a natural disaster can wipe out a season's production overnight.
Although free international trade allows countries to specialize, which in turn increases productivity, such specialization carries risks. After all, small countries often rely on one or two products for the bulk of their exports. If those products are raw materials, the supply is finite and can be used up. If they are foodstuffs, a natural disaster can wipe out a season's production overnight.
Although free international trade allows countries to specialize, which in turn increases productivity, such specialization carries risks. After all, small countries often rely on one or two products for the bulk of their exports. If those products are raw materials, the supply is finite and can be used up. If they are foodstuffs, a natural disaster can wipe out a season's production overnight.
Although free international trade allows countries to specialize, which in turn increases productivity, such specialization carries risks. After all, small countries often rely on one or two products for the bulk of their exports. If those products are raw materials, the supply is finite and can be used up. If they are foodstuffs, a natural disaster can wipe out a season's production overnight.
Which one of the following most accurately expresses the conclusion of the argument as a whole?
Specialization within international trade comes with risks.
A natural disaster can destroy a whole season's production overnight, devastating a small country's economy.
A small country's supply of raw materials can be used up in a short period.
Some countries rely on a small number of products for the export-based sectors of their economies.
When international trade is free, countries can specialize in what they export.
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