Question

Which statement describes a benefit of international trade? Chawalia is a South Asian nation with an agricultural economy specializing in production of aromatic rice. /To increase production, the government introduces mechanized farming./ This process increases the production of rice by 120%. The government begins exporting the surplus rice to Europe and the Americas. /From then on, aromatic rice exports makes up 40% of Chawalia’s annual GDP./ To further increase production, Chawalia formulates a program aimed at producing a minimum of 50 million tons of rice every year. It brings more land under cultivation. /It conducts workshops and training sessions on good agricultural practices./ It provides financing to farmers for buying farm equipment. As a result, more and more farmers practice mechanized farming, leading to a further increase in production. /Soon, Chawalia has a 33% share of global rice production./

Answer 1

Answer and Explanation

Countries gain from exchange when trade enables each country to receive a higher price for exported goods and/or pay a lower price for imported goods. This leads to more efficient resource allocation and allows consumption of a larger variety of goods.International trade is where there is exchange of goods and services across International territories where in most countries this exchange represents a significant a share of gross domestic product(GDP). One of the most immediate benefits of this trade is lower costs to consumers

Answer 2

"From then on, aromatic rice exports makes up 40% of Chawalia's annual GDP"

I just got this one on PLATO