International Trade Benefits for Domestic Firms | CFA Level 1 Exam Prep

International Trade Benefits for Domestic Firms

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Question

International trade can benefit domestic firms because:

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Explanations

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A. B. C. D. E.

Explanation

Competition from abroad helps keep domestic producers on their toes. Domestic producers that otherwise might have few rivals will have to constantly be seeking ways to improve quality and keep costs low.

Simultaneously, the diversity of goods that is available from abroad provides consumers with a broader array of choices than would be available in the absence of international trade.