If Some Industries Exhibit Internal Increasing Returns to Scale in Each

question 27

Multiple Choice

If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

• A) intra-industry trade between countries.
• B) high levels of specialization in both countries.
• C) inter-industry trade between countries.
• D) perfect competition in these industries.
• E) increased productivity in both countries.

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Definitions:

Organizational Setting

The environment or context within which an organization operates, including its culture, structure, and processes.

Spatial Arrangements

The way in which physical space is used and organized to facilitate various activities and processes in an environment, affecting how people interact within it.

Group Norms

Shared expectations and rules that guide the behavior of members within a group or team.

Product Development Teams

Groups of individuals with varied expertise who are tasked with collaborating to develop new products or services for a company.