In the absence of transportation costs, free trade results in the equalization of the prices of traded goods, as well as resource prices, in the trading nations.
Correct Answer:
Verified
Q108: Empirical studies conclude that U.S.environmental policies are
Q109: Intra-industry trade would occur if computers manufactured
Q110: According to the product-life-cycle theory, the last
Q111: When transportation costs are added to our
Q112: Although the theory of comparative advantage explains
Q114: Ricardo's theory of comparative advantage is a
Q115: Most developing countries have pollution-control laws and
Q116: The imposition of pollution-control regulations on domestic
Q117: Intra-industry trade can be explained by product
Q118: According to the theory of 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