Which of the following best describes how exporting and importing affect relationships between businesses and among nations?

• A. They eliminate competition and create monopolies in international markets.
• B. They promote economic interdependence and foster cooperation between countries.
• C. They discourage the formation of trade agreements and alliances.
• D. They reduce the need for communication and negotiation between businesses.

Answer: (B)

Verified step by step guidance

1. Understand the concept of international trade, which involves exporting (selling goods to other countries) and importing (buying goods from other countries).
2. Recognize that exporting and importing create connections between businesses across different countries, leading to economic interdependence where countries rely on each other for goods and services.
3. Analyze how this interdependence encourages cooperation, as countries and businesses negotiate trade agreements, resolve disputes, and work together to maintain beneficial relationships.
4. Consider why exporting and importing do not eliminate competition or create monopolies; instead, they often increase competition by opening markets to more participants.
5. Note that international trade requires communication and negotiation, which further strengthens relationships rather than reducing the need for them.