CFA Investment Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

An increase in international trade results in:

Access to resources that are in limited supply

An increase in international trade typically leads to access to resources that are in limited supply. When countries engage in trade, they can import goods and services that they do not produce domestically or that are available in limited quantities within their borders. This expanded access allows nations to benefit from the variety of resources available in the global market, including raw materials, specialized goods, and technologies that may enhance their own production capabilities. By leveraging the comparative advantages of different countries, industries can access what they need while optimizing costs and improving efficiency.

This dynamic fosters economic growth, as each country can focus on producing what it does best and trade for the goods it needs. Consequently, international trade can stimulate innovation, increase competition, and lead to more efficient resource allocation worldwide.

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Reduced competition and higher domestic prices

A decrease in demand for domestic products and services

Lower wages for domestic workers

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