Question

International trade takes place because of unequal distribution of resources.

• A. True
• B. False

Answer 1

The correct option is A

True

True. There are certain things that each country can produce efficiently. A country can produce a surplus of those products or services and export them to other countries. Similarly, it can import the goods or services which it is deficient in. This pattern of expertise based on uneuqal distribution of resources provides a strong incentive for international trade.