Question

select all the correct answers. which two of these statements explains how can international trade agreements lead to economic growth? by creating jobs in the export industries by opening up new markets for domestic goods by reducing competition between domestic industries by reducing expenditures on domestic production

Explanation:

• International trade agreements can lead to economic growth by creating jobs in export industries. When a country exports more goods and services (due to access to new markets via trade agreements), more production is needed, which requires more workers.
• Opening up new markets for domestic goods (through trade agreements) means domestic producers can sell more of their output. Increased sales can lead to higher revenues for firms. Firms may expand production, invest in new capital (like machinery), and hire more workers. This expansion contributes to economic growth as measured by metrics like GDP (Gross Domestic Product, which includes consumption, investment, government spending, and net - exports).
• Reducing competition between domestic industries is not a positive for economic growth. Competition usually drives innovation, efficiency, and better prices for consumers. Reduced competition can lead to monopolistic behavior (higher prices, lower quality, less innovation).
• Reducing expenditures on domestic production is also not conducive to economic growth. Domestic production expenditure (like investment in factories, research and development) is an important part of economic activity. Reduced expenditure would likely lead to a slowdown in production capacity and technological progress.

Answer:

by creating jobs in the export industries, by opening up new markets for domestic goods