Which phrase denotes the cross-border exchange of goods and services?

Which phrase denotes the cross-border exchange of goods and services?

• A. Terrorism
• B. Xenophobia
• C. International trade
• D. NAFTA

Answer: (C)

The main idea here is cross-border economic activity, specifically international trade—the buying and selling of goods and services between countries. This term covers exports and imports, the flow of products and finances across borders, and how policies, tariffs, and exchange rates shape those exchanges. Terrorism and xenophobia aren’t about the exchange of goods and services; they involve violence for political aims and fear or distrust of foreigners, respectively. NAFTA is a specific trade agreement aimed at reducing barriers among three countries, which relates to cross-border trade but is not the general phrase for the exchange itself. The correct term, international trade, names that broad activity.

The main idea here is cross-border economic activity, specifically international trade—the buying and selling of goods and services between countries. This term covers exports and imports, the flow of products and finances across borders, and how policies, tariffs, and exchange rates shape those exchanges.

Terrorism and xenophobia aren’t about the exchange of goods and services; they involve violence for political aims and fear or distrust of foreigners, respectively. NAFTA is a specific trade agreement aimed at reducing barriers among three countries, which relates to cross-border trade but is not the general phrase for the exchange itself. The correct term, international trade, names that broad activity.