help!! medal and fan for sure! Canada and Australia are (mainly) English-speaking countries with populations that are not too different in size (Canada's is 60 percent larger). But Canadian trade is twice as large, relative to GDP, as Australia's. Why should this be the case? (Mark all that apply.)
A. Canada is a member of the World Trade Organization while Australia is not. B. Transportation costs for imports and exports are higher in Australia because the distance goods must travel. C. Canada's GDP is approximately double that of Australia's. D. Canada is close to a major economy. E. Australia's GDP is very large; therefore, its volume of trade relative to GDP would be expected to be small.
I'm not entirely sure, but I would think that because Canada is close to the US, it would make it have the Canadian trade larger than the Australian trade.
@jim_thompson5910 yeah that's what I was thinking so it's D. and also I think B is correct too.
That's true. Both B and D are saying the same basic thing: the further you are from a major economy, the more money you pay for shipping.
Honestly I feel like a better answer-choice would have mentioned NAFTA rather than, "close to a major economy."
yes the answer was B and D. Thanks for help! :)
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