Country A exports electronic goods from Country B although there are no underlying differences in factor endowments between the two countries. Which of the following theories explains this anomaly?
A) comparative advantage theory
B) new trade theory
C) Ricardo's theory
D) Smith's theory
Correct Answer:
Verified
Q19: The theories of Smith and Ricardo show
Q20: Some of the arguments made by the
Q21: Which of the following is a major
Q22: The principle of mercantilism views trade as
Q23: Which of the following observations is consistent
Q25: According to Ricardo's theory of comparative advantage,
Q26: The Heckscher-Ohlin theory predicts that countries will
A)
Q27: Which of the following is the main
Q28: The theory of comparative advantage suggests that
Q29: Identify the theory that supports the view
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