International Trade Based on External Scale Economies in Both Countries

question 11

Multiple Choice

International trade based on external scale economies in both countries is likely to be carried out by

• A) a relatively large number of price competing firms.
• B) a relatively small number of price competing firms.
• C) a relatively small number of imperfect competitors.
• D) monopolists in each country.
• E) a large number of oligopolists in each country.

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Definitions:

Latin America

A region in the Western Hemisphere, comprised mainly of countries where Romance languages are spoken, primarily Spanish and Portuguese.

Immigrants

Individuals who come to live permanently in a foreign country, often seeking better living conditions or opportunities.

77 Percent

An expression that potentially indicates a specific percentage, possibly related to statistical data in a given context.

Public Schools

In many countries, schools supported by public funding that provide free education to children.