Compared to a free trade equilibrium when there are no transport costs, transport costs result in:
A) a lower price in the exporting country.
B) a higher price in the importing country.
C) a smaller volume of trade.
D) lower net welfare gains from international trade.
E) All of the above.
Correct Answer:
Verified
Q1: A shortcoming of the Heckscher-Ohlin model of
Q2: Compared to a hypothetical free trade equilibrium
Q4: During the nineteenth century, transport costs:
A) fell
Q5: During the nineteenth century, price gaps:
A) shrank
Q6: The HO model assumes that when an
Q7: The HO model assumes that when an
Q8: When an economy shifts from no trade
Q9: When an economy shifts from no trade
Q10: The model that shows how the economy
Q11: Compared to the Heckscher-Ohlin model, all other
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