A country with a ________ domestic market is most likely to gain from international trade,in part because of its prospects of benefitting from ________.

Question

Quizplus · Accepted Answer

A country with a small domestic market is most likely to benefit from economies of scale and learning by doing through international trade. With access to larger markets, the country can increase production and take advantage of cost-saving opportunities. Additionally, learning by doing occurs as firms gain experience in producing goods for export and become more efficient over time. This can lead to long-term benefits for the domestic market as well.

A Country with a ________ Domestic Market Is Most Likely