Firms in industrial countries find a larger market for their goods in other industrial countries than in developing countries because:
a. the consumption patterns in the industrial countries are highly heterogeneous.
b. the trade policies of the industrial nations are more favorable than the developing countries.
c. the industrial countries tend to have a higher population than the developing countries.
d. the industrial countries are capital intensive countries.
e. the consumption patterns in the industrial countries are more or less similar.
e
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What will be an ideal response?
The national defense argument for trade restriction holds that
A) the president should have the authority to erect trade barriers in case of war or national emergency. B) free trade is a danger to the national defense because open borders increase the likelihood that spies will get into the country. C) a country should produce those goods necessary for national defense purposes even if it doesn't have a comparative advantage in them. D) if your enemy erects trade restrictions, so should you.
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A) $0.18 B) $0.10 C) $0.08 D) $0.02 E) $0.80