If the cost of transporting a good between two countries exceeds the pre-trade price difference, then trade in that good is:

Correct option is B

· International trade occurs only when it is economically viable.
· If the transportation cost is greater than the difference in price between two countries, trade becomes:
· Unprofitable for exporters or importers.
· Thus, impossible or irrational from an economic standpoint.
· Trade happens only if:
· Total cost (including transport) < Price in the importing country.