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It Is Not Possible for One Country to Sell All

Question 95

Multiple Choice

It is not possible for one country to sell all products more cheaply than other countries for any length of time because the


A) the principle of absolute advantage would then be violated.
B) exporting country will find its cost of production decreasing relative to the importing country.
C) depreciation of the exporting country's currency will lead to trade in both directions.
D) depreciation of the importing countries' currencies ensures that trade will flow in both directions.
E) importing countries will react by constructing severe trade barriers.

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