Which of the following statements is true with regard to international trade between countries?
A) Greater cultural distance between the home and host countries decreases the liability of foreignness to multinational companies.
B) Colony-colonizer relationships have a strong negative effect on bilateral trade between countries.
C) Wealthy countries engage in relatively more cross-border trade than poorer ones.
D) Political integrations decrease the expected trade intensity between two countries.

Question

Quizplus · Accepted Answer

Wealthy countries engage in relatively more cross-border trade than poorer ones. Rich countries tend to trade with other rich countries; in addition, poor countries also trade more frequently with rich countries than with other poor countries.

Which of the Following Statements Is True with Regard to International