Question

Which of the following is NOT an acceptable foundation for international trade?

• A. Production of a specific commodity
• B. Mutual benefits for trading countries
• C. Conflicts in foreign policies of trading countries
• D. Better transportation facilities between trading countries

Hint:

When analyzing such questions, look for the outlier. Three options will typically be positive enablers of trade (specialization, mutual benefit, transport), while one will be a negative factor or a barrier (conflict).

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question asks to identify which of the given options is a hindrance to international trade, rather than a basis or facilitator for it, based on the provided passage.

Step 3: Detailed Explanation:
The passage states that international trade is based on "specialization in production" (related to option A), should be "mutually beneficial" (option B), and is facilitated by "well-developed transportation" (related to option D). It also mentions that trade is "related to the foreign policy of nations". While foreign policy is related to trade, conflicts in foreign policy would act as a barrier to trade, not a foundation for it. Trade thrives on cooperation, not conflict.

Step 4: Final Answer:
Conflicts in foreign policies of trading countries are a barrier to, not a foundation for, international trade.