Cartels are inherently unstable

The HeckscherOhlin model assumes that technology in each industry:

a. Is the same in each nation—each firm has access to the most profitable technology. b. has increasing returns so that one nation will be able to gain a comparative advantage by developing new technology. c. is very different across the world—some nations have access to technology, whereas others do not. d. is hard to access because R&D is very expensive especially for lowincome nations.

The financing of U.S. export transactions, ceteris paribus

A) reduces U.S. interest rates. B) reduces the amount of foreign currency held by the Fed. C) reduces U.S. GDP. D) increases the amount of foreign currency held by U.S. banks.