Which of the following is NOT a likely result of intraindustry trade based on internal economies of scale?
A)Job creation at domestic firms entering international trade
B)Lower prices for the domestic consumers of the product now being traded
C)Increased sales and lower per unit costs for the firm doing the exporting
D)Higher prices for the exported product

Question

Quizplus · Accepted Answer

Intraindustry trade based on internal economies of scale is typically characterized by increased sales and lower per unit costs for the exporting firms, which can lead to job creation at domestic firms entering international trade and lower prices for domestic consumers of the product now being traded. Higher prices for the exported product are not a likely result because internal economies of scale allow firms to produce efficiently and lower costs, which, in turn, enables them to earn greater profits without having to raise prices.

Which of the Following Is NOT a Likely Result of Intraindustry