Question

What might account for the dramatic increase in international trade over the past 50 years?

Short answer

Below are the following 4 important factors which are responsible for the domestic increase international trade.

Step-by-step solution

Step 1. Meaning of international trade.

It is an activity carried out by either countries or organizations to exchange products and services to boost their economy. It involves a scenario where a country buys a commodities from another country simply because the production cost is high compared to importation cost or because the commodity is not available in the country.

Step 2. These are the factors responsible for the dramatic increase in international trade over the past 50 years.

a) Reduction in tariffs.

b) Quotas and other trade barriers.

c) Improved transportation.

d) Communication media have made people more aware of what is available in the rest of the world.