It has been proposed that every nation producing arms should forbid the export of weapons and reduce production in order to lower the risk of war. What would be the outcome if this were to happen?
- 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.