One Reason That a Large Share of the Trade Between

question 31

Multiple Choice

One reason that a large share of the trade between high-income industrial economies is intraindustry trade is because

• A)it is more advantageous than interindustry trade.
• B)high-income industrial economies produce in the first stage of the product cycle.
• C)high-income industrial economies are wealthier than developing countries.
• D)high-income industrial economies have dissimilar resource endowments in absolute terms.
• E)it allows firms to take advantage of internal economies of scale.

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Definitions:

Long-Term Memory

A type of memory capable of storing large amounts of information for potentially unlimited duration.

Short-Term Memory

A component of human memory system that is capable of holding a small amount of information in mind in an active, readily available state for a short period of time.

Encoding Specificity

The principle that recall is most effective when the cues present at the time of learning are also present at the time of retrieval.

Recall

The act of retrieving information or memories from one's past, often without external cues.