Two Countries Engaged in Trade in Products with Scale Economies,produced

question 27

Multiple Choice

Two countries engaged in trade in products with scale economies,produced under conditions of monopolistic competition,are likely to be engaged in

• A)intra- industry trade.
• B)Heckscher- Ohlinean trade.
• C)price competition.
• D)inter- industry trade.
• E)immiserizing trade.

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Definitions:

Industry Life Cycle

The stages through which an industry goes from its inception to its decline, typically categorized as introduction, growth, maturity, and decline.

Necessities

Basic needs required for sustaining human life, such as food, water, shelter, and clothing.

Income

Money received, especially on a regular basis, for work or through investments.

Industry Life Cycle

A concept that describes the stages of growth and development that an industry goes through from inception, through growth, maturity, and eventually decline.