By adjusting the model of comparative advantage to include transportation costs along with production costs we would expect ?

Related Mcqs:

The comparative advantage model of Ricardo was based on ?

A. intraindustry specialization and trade B. interindustry specialization and trade C. demand conditions underlying specialization and trade D. income conditions underlying specialization and trade...

The analyzes the income distribution effects of trade in the short run when resources are immobile among industries ?

A. Stolpher-Samuelson theory B. factor endowment theory C. specific factors theory D. overlapping demand theory...

Interindustry trade can be explained by all of the following except ?

A. high transportation costs as a proportion of product value B. different growing seasons of the year for agricultural products C. product differentiation for good such as automobiles D. high per capita incomes in exporting countries...

The factor endowment model of international trade was developed by ?

A. Adam Smith B. David Ricardo C. John Stuart Mill D. Eli Heckscher and Bertil Ohlin...

The product cycle theory of trade is essentially a ?

A. static, short run trade theory B. dynamic long run trade theory C. zero-sum theory of trade D. negative-sum theory of trade...