Q. Neighboring countries tend to collaborate for all of the following reasons EXCEPT:
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(A)
the distance that goods need to travel between such countries is short
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(B)
neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
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(C)
consumers’ tastes are likely to be similar, and distribution channels can be easily established in adjacent countries
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(D)
neighboring countries may have a common history and interests, and may be more willing to coordinate their policies
✅ Correct Answer: (B)
neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates