It has been observed that trade within MERCOSUR trade has increased most rapidly in protected capital-intensive products like automobiles, machinery and electronic goods in which the member countries enjoy global comparative advantage.

Question

Quizplus · Accepted Answer

Trade within MERCOSUR has increased most rapidly in products like automobiles, machinery, and electronic goods due to preferential trade agreements and protectionist policies among member countries, not necessarily because these countries have a global comparative advantage in these sectors.

It Has Been Observed That Trade Within MERCOSUR Trade Has