When External Scale Economies Exist in an Industry, New Trade

question 55

Multiple Choice

When external scale economies exist in an industry, new trade opportunities will cause:

• A)the consumers in both the exporting and the importing countries to gain.
• B)the consumers in the exporting country to gain but the consumers in the importing country to lose.
• C)the consumers in both the importing and exporting countries to lose.
• D)the consumers in the importing country to gain but the consumers in the exporting country to lose.

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Definitions:

Disclaimed

The act of renouncing a claim to or denying responsibility for something, often seen in legal disclaimers or warranties.

Type

A category or class that individuals or things can be grouped into based on shared characteristics or qualities.

Implied Warranty

A legal term for the unspoken and unwritten guarantees that the law assumes goods or services must meet.

Trade Custom

Established practices and patterns of behavior that are widely accepted within a particular industry.