Small countries enjoy a larger share of the gain from specialization and trade than large countries because:
A) they can trade at prices closer to their consumption possibilities curves than can large countries.
B) they are more nimble in reallocating their resources to export industries.
C) large countries are not interested in competing for trade with small countries.
D) large countries prefer to trade at their domestic opportunity costs rather than at small country opportunity costs.
Correct Answer:
Verified
Q45: The law of comparative advantage states that
Q46: When countries specialize in producing and exporting
Q47: International specialization and the gains that result
Q48: The gains from trade:
A) accrue primarily to
Q49: The analysis of international trade suggests that
Q51: The winners from trade are the _
Q52: Non-tariff barriers are:
A) artificial differences in prices
Q53: The introduction of a tariff on imported
Q54: The imposition of a tariff will:
A) increase
Q55: To protect the competitiveness of domestic industries,
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