The danger of trade dependency is that ________.
A) it often leads to the exploitation of developed countries
B) political turmoil in a country might affect all dependent countries
C) the countries involved in trade often get into rivalry over trade tariff issues
D) it is difficult to end trade activities with current trade partners and find new trade partners

Question

Quizplus · Accepted Answer

Political unrest or instability in a country can impact its trade partners, leading to a ripple effect that affects all dependent countries. This was clearly demonstrated during the COVID-19 pandemic, where disruptions in trade and supply chains caused a domino effect that impacted countries around the world. Trade dependency can also make it difficult for countries to diversify their economies and find new trade partners, as ending trade activities with current partners can be economically costly. However, the other options are not necessarily inherent dangers of trade dependency. While there may be cases of exploitation or trade rivalries, these do not apply to all trade relationships.

The Danger of Trade Dependency Is That ________