Simple model of free trade assumed away transportation costs between countries.
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Q2: The principle of mercantilism views trade as
Q2: The theories of Smith and Ricardo show
Q4: The theory of comparative advantage suggests that
Q6: David Ricardo's theory of comparative advantage explains
Q7: The production possibility frontier will be convex
Q9: Mercantilism supports the idea that countries should
Q9: The production possibility frontier will be parabolic
Q10: Diminishing returns show that it is feasible
Q10: New trade theory stresses that in some
Q11: Heckscher-Ohlin theory supports the case for unrestricted
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