Although the theory of comparative advantage explains trade in manufactured goods, it has no explanatory value fur trade in business services.
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Most developing countries have pollution-control laws and enforcement policies that are more stringent than those of the major industrial countries.
A. 对
B. 错
When transportation costs are added to our trade model, the low-cost exporting country produces less, consumes more, and exports less than that which occurs in the absence of transportation costs.
A. 对
B. 错
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.
A. 对
B. 错
In the absence of transportation costs, free trade results in the equalization of traded goods, as well as resource prices, in the trading nations.
A. 对
B. 错