In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms

Under some circumstances, trade could stifle the development of new industries and reduce global efficiency. All of the following describe conditions that could lead to that situation EXCEPT

A) an initial head start gives a scale advantage to already existing firms in one country. B) diseconomies of scale make it impossible for new firms to enter the market. C) a location has a better-developed linkage between suppliers and producers, giving it a cost advantage. D) a historical accident, such as the shifting of airplane production to the United States to avoid World War II bombings, causes firms in one location to have a competitive advantage.

When interest rates in the U.S. decline, we can expect net capital outflow to:

A. increase. B. be zero. C. decrease. D. be unaffected.