Ask Question
BusinessBusiness
9 June, 03:13

High transaction costs will tend to a. reduce the number of mutually beneficial exchanges. b. lead to more specialization in accordance with the law of comparative advantage. c. increase the total gains from trade. d. increase the number of mutually beneficial exchanges.

+4
Answers (1)
  1. 9 June, 06:14
    0
    Answer: Option (a) is correct.

    Explanation:

    Transaction costs are considered as a barrier or obstacle to trade between the nations. High transaction costs are generally occured because of the geographical proximity. Geographical proximity refer as the distance between the two nations. The larger the distance between the two nations, the larger will be the transaction costs. Therefore, higher transaction costs directly affects the trade between the two countries because it will become expensive for the nation.

    Hence, this will reduce the number of mutually beneficial exchanges.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “High transaction costs will tend to a. reduce the number of mutually beneficial exchanges. b. lead to more specialization in accordance ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Employees in the united states are comfortable with commission - and incentive-based pay plans, whereas employees in italy and mexico prefer pay plans that are more predictable, like seniority pay.
Answers (2)
By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid Select one: a. the principal-agent problem. b. corporate governance. c. conflict between the CFO and the CEO d.
Answers (1)
Telecommuting is an example of flextime. true or false?
Answers (1)
Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 10 units at $32 Feb. 17 Purchase 15 units at $33 Jul. 21 Purchase 17 units at $34 Nov.
Answers (1)
You are considering the purchase of a common stock that paid a dividend of $2.00 yesterday. You expect this stock to have a growth rate of 15 percent for the next 3 years, resulting in dividends of D1=$2.30, D2=$2.645, and D3=$3.04.
Answers (1)
New Questions in Business
The two basic types of cost accounting systems are: job order and process costing job order and customized product costing process costing and perpetual costing perpetual costing and periodic costing
Answers (1)
What is a major benefit sales people offer to their businesses?
Answers (1)
Gallonte Inc. began operations in April of this year. It makes all sales on account, subject to the following collection pattern: 25% are collected in the month of sale; 55% are collected in the first month after sale;
Answers (1)
At december 1, 2017, nash's trading post, llc accounts receivable balance was $12430. during december, nash's, llc had credit sales of $33300 and collected accounts receivable of $26640. at december 31, 2017, the accounts receivable balance is
Answers (1)
Tyrone is frustrated by having submitted dozens of resumes to tech companies around the pacific northwest, resulting in zero job interviews. he decides to try submitting three resumes as "tyler," and receives two calls from prospective employers.
Answers (1)
Home » Business » High transaction costs will tend to a. reduce the number of mutually beneficial exchanges. b. lead to more specialization in accordance with the law of comparative advantage. c. increase the total gains from trade. d.
Sign Up Forgot Password?