In a situation where it costs the same to produce a boat domestically as it does to produce it in another country, the boat will generally be produced locally due to _____, a reason that complete specialization by countries does not occur.

Question

Quizplus · Accepted Answer

Transportation costs can make it more economical to produce goods locally rather than importing them, even when production costs are the same, because the additional expense of shipping can make the overall cost of imported goods higher.

In a Situation Where It Costs the Same to Produce