题目内容
When transportation costs are added to our trade model, the degree of specialization in production between two countries increases as do the gains from trade.
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In the absence of transportation costs, free trade results in the equalization of traded goods, as well as resource prices, in the trading nations.
In industries where the final product is much less weighty or bulky than the materials from which it is made, firms tend to locate production near resource supplies.
Industrial processes that add weight or bilk to a commodity are likely to be located near the resource market to minimize transportation costs.
A product will be traded only if the cost of transporting it between nations is less than the pretrade difference betwwen their relative product prices.
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