It has been proposed that every country that manufactures arms should prohibit weapon exports and reduce output in order to lower the chance of war. What would happen if this took place?
- AThe balance of payments on current account of countries exporting weapons would immediately improve.
- BThe price of existing weapons would fall.
- CThere would be a risk of structural unemployment in countries that are major producers of weapons.
- DThere would be no overall effect on the balance of payments as countries would produce their own weapons.