A product is produced in a monopolistically competitive industry with scale economies.If this industry exists in two countries,and these two countries engage in trade with each other,then we would expect
A) the country in which the price of the product is lower will export the product.
B) the country with a relative abundance of the factor of production in which production of the product is intensive will export this product.
C) neither country will export this product since there is no comparative advantage.
D) each country will export different varieties of the product to the other.
E) the countries will trade only with other nations they are not in competition with.
Correct Answer:
Verified
Q28: Two countries engaged in trade in products
Q29: A firm is more likely to engage
Q30: When a multinational affiliate replicates production in
Q31: A firm's foreign direct investment.decisions are,in the
Q32: Two countries engaged in trade in products
Q33: A corporation is considered a multinational if
Q34: During the past decade,U.S.imports of business services
Q35: When a multinational affiliate replicates elements of
Q36: Trade without serious income distribution effects is
Q38: We often observe "pseudo- intra- industry trade"
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