What is true of the relationship between trade and economic growth? Group of answer choices Free trade hampers economic growth and leads to lower living standards in the long run. The Leontief paradox notes that adopting an open economy and embracing free trade does not reward a nation with higher economic growth. Countries open to international trade display higher growth rates than those that close their economies to trade. Within a group of developing countries, closed economies grow faster than open economies.

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Jaylene Alvarado

Business

23 April, 09:18

What is true of the relationship between trade and economic growth? Group of answer choices Free trade hampers economic growth and leads to lower living standards in the long run. The Leontief paradox notes that adopting an open economy and embracing free trade does not reward a nation with higher economic growth. Countries open to international trade display higher growth rates than those that close their economies to trade. Within a group of developing countries, closed economies grow faster than open economies.

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Adolfo Campos · Answer 1

Countries open to international trade display higher growth rates than those that close their economies to trade

Explanation:

The trade has positive and significant economic growth and is constant with the growth and development in terms of the trade and commerce. The percentage rise in the GPD average per capita growth in exports that creates jobs and boost the economic growth and lead to the gain in the competitive advantages and these being open economies grow faster than closed economies.