Answer the following statements true (T) or false (F)

1.The imposition of pollution-control regulations on domestic steel manufacturers leads to decreases in production costs and an improvement in the steel manufacturers' competitiveness.
2.Empirical studies conclude that U.S. environmental policies are a more important determinant of trade performance than capital, raw materials, labor skills, and wages.
3.Although the theory of comparative advantage explains trade in manufactured goods, it has no explanatory value for trade in business services.
4.Most developing countries have pollution-control laws and enforcement policies that are more stringent than those of the major industrial countries.
5.When transportation costs are added to our trade model, the low-cost exporting country produces less, consumes more, and exports less than that which occurs in the absence of transportation costs.


1.False
2.False
3.False
4.False
5.True

Business

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What will be an ideal response?

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