Australia exports wine to Canada, and Canada also exports wine to Australia. This is a(n)
A) example of the inefficiency of trade patterns.
B) obvious failure to take advantage of specialization.
C) violation of the law of comparative advantage.
D) general conclusion of the Heckscher- Ohlin theory.
E) likely result of economies of scale and product differentiation.
Correct Answer:
Verified
Q37: According to what economists call the "law
Q38: The existence of any "gains from trade"
Q39: Consider two countries that can produce rice
Q40: The diagram below shows the domestic demand
Q41: When opportunity costs are identical between two
Q43: One region is said to have an
Q44: When opportunity costs differ between countries,
A)comparative advantages
Q45: The diagram below shows the domestic demand
Q46: The theory that patterns of international trade
Q47: Economies of scale and product differentiation can
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents