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What is the primary purpose of entrepot trade in international commerce?

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Question

What is the primary purpose of the entrepot trade in international commerce?

Options

  • To manufacture goods for local consumption.

  • To import goods for storage and re-export.

  • To sell goods directly to consumers.

  • To impose high tariffs on goods.

MCQ
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Solution

To import goods for storage and re-export.

Explanation:

Entrepot trade mainly involves importing goods, storing or processing them minimally, and then re-exporting to another country.

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