It may be unrealistic to assume that consumer tastes are the same across nations and invariant with respect to income:
A. so it is not one of the HO assumptions.
B. but it is an HO assumption because it enables the analysis to focus on other issues that drive trade and prices.
C. but it actually is true so it is an HO assumption.
D. and it is not an HO assumption because consumer tastes within a nation are not relevant to international trade.
Ans: B. but it is an HO assumption because it enables the analysis to focus on other issues that drive trade and prices.
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