Which of the Following Is True About Strategic Trade Policies

question 1

Multiple Choice

Which of the following is true about Strategic Trade Policies?

• A)it is not difficult to identify industries that will provide large external economics in the future
• B)since most leading nations undertake strategic trade policies at the same time,their efforts are largely neutralized
• C)strategic trade policy pursued by a country does not hurt any of the trading partners
• D)Strategic Trade Policy was the brainchild of Heckscher and was practiced as early as the 1900s.

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Definitions:

Competitive Markets

Market structures characterized by a large number of buyers and sellers, where no single participant has the power to significantly influence prices.

Long-Run Supply Curve

A graphical representation showing the quantities of a good a supplier is willing to produce and sell at different prices over a long period, without fixed inputs.

Constant Returns

A situation where increasing the amount of inputs in the production process proportionally increases the output, implying a linear relationship between inputs and outputs.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good changes as production increases.