If international trade is based on product differentiation, for a country the basis for
A. importing is that the price of the imports is the same as the price of the domestic products.
B. exporting is the domestic production of unique models or varieties demanded by some consumers in foreign markets.
C. exporting is that domestic producers can charge a much higher price in the international market.
D. importing is that foreign firms usually enjoy external scale economies.
Answer: B
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Movement of money to another country for fear of a sudden loss of value is
a. conditionality b. default c. debt service d. capital flight e. none of the above
In the long run, firms in a perfectly competitive market produce:
A. where average variable costs are minimized. B. at a quantity with positive economic profits. C. where price equals marginal cost. D. where MC is at its lowest point.
Inclusive property rights give an individual less options and lower incentives to avoid inefficient choices
Indicate whether the statement is true or false
The administrative burden of taxation relates to the a. the disincentive for individuals and businesses to work generate income
b. individuals' cost of preparing tax returns and the government's cost of enforcing tax laws. c. the opportunity cost of social programs. d. the net interest that must be paid on the national debt.