If Two Countries Begin Trade and Both Produce a Product

question 32

Multiple Choice

If two countries begin trade and both produce a product subject to external economies of scale, then the country with the ________ rate of production will ________ production until it controls ________ of the market.

• A) higher; increase; 100%
• B) higher; increase; 50%
• C) lower; increase; 100%
• D) lower; increase; 50%
• E) higher; decrease; 0%

---

Definitions:

Opportunity

A set of circumstances that makes it possible to do something or for something to happen, often leading to potential benefits or advancement.

Strategic Planning Team

A group of individuals from various departments within an organization responsible for developing long-term goals and strategies.

Mission Statement

Written explanation of an organization’s business intentions and aims.

Company's Objective

A set of goals or objectives that a company aims to achieve, which guide its internal strategy and decision-making processes.