Question

What factors does Paul Krugman identify that

supported expanding international trade in the 1800s?

Short answer

The factors that supported expanding international trade in thiswere:

1. Construction of Suez canal
2. Construction of Union Pacific Railroad.
3. Laying down of the first submarine telegraph cable under the Atlantic Ocean.

Step-by-step solution

Step 1. Meaning of International Trade.

The exchange of goods and services across international borders or territories is called international trade.

Step 2. The different factors

The factors that supported expanding international trade in thiswere:

1. Construction of the Suez canal - Suez canal provides the shortest sea route between the eastern and the western worlds. It plays a major role in lowering the price of goods and their easy and fast shipment.
2. Construction of Union Pacific Railroad - It enabled freight transportation to areas which would have taken months and a higher cost.
3. Laying down of the first submarine telegraph cable under the Atlantic Ocean - The transfer of message between North America and Europe was faster.