In the Presence of External Economies of Scale,trade

question 11

Multiple Choice

In the presence of external economies of scale,trade

• A) may or may not improve welfare in both countries.
• B) will unambiguously improves welfare in both countries.
• C) will unambiguously worsens welfare in both countries.
• D) will unambiguously worsen welfare in the exporting country and improve welfare in the importing country.
• E) will unambiguously improve welfare in the exporting country and worsen welfare in the importing country.

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Definitions:

Service Delivery

The act of providing a service to customers, including all activities and processes that contribute to the service's effectiveness and quality.

Continuous-Process Production

A manufacturing method where the production process is uninterrupted to ensure efficient and scalable production of goods.

Automated Production

The use of automation technologies to perform manufacturing tasks and processes, reducing the need for human labor and increasing efficiency.

Raw Materials

Basic materials and substances that are processed or refined to manufacture goods, products, or provide services.