Which of the following objectives is NOT a basis for international trade?

A) To gain from economies of scale.
B) To obtain goods that would be unavailable otherwise.
C) To obtain goods at lower prices than would be possible if they were produced domestically.
D) To increase Treasury reserves of gold bullion.
E) To increase output from specialization.

Question

Abhay Kaila · Accepted Answer

Final Answer : D, Explanation :  Increasing Treasury reserves of gold bullion is not a basis for international trade. It is an objective that was historically pursued by countries, but it does not relate to the traditional reasons for engaging in international trade, which are mainly to obtain goods and services that a country cannot produce or to obtain them at lower costs than producing them domestically.

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