In the Graph in Question #24 Above, If the Two

question 8

Multiple Choice

In the graph in Question #24 above, if the two countries are opened to trade with each other, country A will export __________ and country B __________.

• A) good X; will export good Y
• B) good X; also will export good X because there has been a factor-intensity reversal
• C) good Y; also will export good Y because there has been a factor-intensity reversal
• D) good Y; will export good X

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Definitions:

Good Faith

The honest intent to act without taking an unfair advantage over another party in a transaction.

Security Interest

A legal claim or lien on property, both personal and real, granted to secure the performance of an obligation, usually the repayment of a debt.

Future Inventory

Goods or materials that a company plans to acquire or produce for sale in the future.

Security Interest

A security interest is a legal right granted by a borrower to a creditor over the borrower's property or assets as a security for a loan, ensuring repayment of the debt.