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Suppose Country X Partially Specializes in the Production of Only

question 49

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Suppose country X partially specializes in the production of only two goods, food and clothing. At the initial free trade equilibrium, the country produced 40 units of food and 20 units of clothing. At the same time10 units of food were exported and 10 units of clothing were imported by country X. Now suppose a technological innovation in country X leads to a balanced growth while leaving the relative prices of food and clothing unchanged in the international market. Production of food in country X rises to 50 units and that of clothing rises to 25 units. If consumption of food, on the other hand, rises to 42 units, we can most reasonably conclude that the:


Definitions:

Distribution Site

is a location or platform where products or services are made available to purchasers or end-users.

Inconsistency

The lack of uniformity or stability in actions, values, methods, measures, principles, expectations, or outcomes.

Customer Service Experience

The perception and feelings of a customer about the support and services provided by a company throughout their purchase journey.

Customer Experience Management

The practice of designing and reacting to customer interactions to meet or exceed their expectations, thereby increasing customer satisfaction, loyalty, and advocacy.

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