Which of the following factors has been shown to affect the quantity of trade between two countries?
a. if the two are similar in size
b. if both countries are landlocked
c. if the same language is spoken in both
d. if they were colonized by different countries
e. if the two share ideological values
Question 2
Why does Frankel argue that international trade may have the effect of reducing income inequality within countries?
a. Workers tend to benefit more from trade than the owners of capital do.
b. Trade tends to increase a country's overall income, making everyone better off.
c. Trade makes countries richer, and richer countries can afford to adopt income redistribution policies.
d. Trade allows countries to import cheap consumer goods, allowing the poor to enjoy a better standard of living.
e. Countries that trade more tend to be more democratic, so the people are able to exert pressure on governments to redistribute income.
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