One reason that a large share of the trade between high-income industrial economies is intraindustry trade is because
A) it is more advantageous than interindustry trade.
B) high-income industrial economies produce in the first stage of the product cycle.
C) high-income industrial economies have dissimilar resource endowments in absolute terms.
D) it allows firms to take advantage of internal economies of scale.
D
Economics
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If a country produces a commodity in the range of decreasing returns to scale, and the country begins to export more in a pure free trade system, the domestic price of the commodity will
a. fall. b. rise. c. exceed the price in foreign countries. d. be below the price in foreign countries. e. One cannot predict the impact on the price of the commodity.
Economics