Assume That Transportation Costs Are Especially High for Widgets in the Two-Country,two-Product

question 58

Multiple Choice

Assume that transportation costs are especially high for Widgets in the two-country,two-product Ricardian model,and Country A enjoys a comparative advantage in Widgets,then

• A) country B must also enjoy a comparative advantage in Widgets.
• B) country B may end up exporting Widgets.
• C) country A may switch to having a comparative advantage in the other good.
• D) country A will still export Widgets.
• E) Trade may be impossible between the two countries.

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Definitions:

Anti-Americanism

A sentiment that opposes American politics, culture, or people, often resulting from political disagreements, cultural differences, or historical conflicts.

Vietnam War

A prolonged conflict from 1955 to 1975 between North Vietnam, supported by its communist allies, and South Vietnam, backed by the United States, resulting in a North Vietnamese victory.

United States

A federal republic in North America comprising 50 states, known for its significant impact on global politics, economy, and culture.