Is it possible that trade could prevent the development of new and more efficient industries?
What will be an ideal response?
Yes, under certain circumstances. Using the textbook example, suppose that Europeans are potentially more efficient at making commercial aircraft than Americans. Their potential can only be realized, however, after a period of experimentation and development. The initial problem they face is that the efficiency advantage goes to the United States because of its better developed linkages between suppliers and producers. The availability of existing planes at a cost that is lower than initial costs will be in the European industry may deter the development of the industry.
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Because of the owner's prejudice, a firm chooses to discriminate against hiring Asian workers. Compared to an otherwise identical, nondiscriminating firm in the same competitive market, the discriminating firm will: a. incur higher costs
b. receive lower profits. c. receive higher profits. d. be characterized by both (a) and (b).
Given two investments P and Q, with the former having a mean 0.7 and variance 0.17 and the latter having a mean 0.7 and a variance 0.03, a risk-preferrer will be indifferent between the two
Indicate whether the statement is true or false