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

Sources of Comparative Advantage 15/08/2023

A. The prices of trade goods to be lower than when there are no transportation costs
B. specialization to stop when the production costs of the trading partners equalize
C. The volume of trade to be less than when there are no transportation costs
D. The gains from trade to be greater than when there are no transportation costs

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...
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