The reduction in the average tariff rates on manufactured products since 1950 implies all of the following except that
A)firms are dispersing parts of their production process to global locations to drive down production costs and increase product quality.
B)the economies of the world's nation states are becoming more intertwined.
C)nations are becoming increasingly independent of each other for important goods and services.
D)the world has become significantly wealthier since 1950.

Question

Quizplus · Accepted Answer

A reduction in average tariff rates on manufactured products implies that trade barriers are being lowered, leading to greater economic interdependence between countries. This makes choice A likely, as firms may be seeking cheaper production costs in other countries. The reduction in average tariff rates could also suggest that the world economy has grown, making D plausible. However, it cannot imply that nations are becoming increasingly independent of one another for important goods and services, as lower tariff rates imply the opposite - that countries are more reliant on each other for trade.

The Reduction in the Average Tariff Rates on Manufactured Products