MCQOPTIONS
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| 1. |
Intra-industry trade theory ? |
| A. | Explains why the United States might export autos and import clothing |
| B. | Explains why the United States might export and import differentiated versions of the same product such as different types of autos |
| C. | Assumes that transport costs are very low or do not exist |
| D. | ignores seasonal considerations for agricultural goods |
| Answer» C. Assumes that transport costs are very low or do not exist | |