QUESTION 1 Consider the model with R&D and Components and with two countries Home and Foresgn Home has comparative advantage in R&D. Which of the statements below is TRUE? Oa The Terms of Trade of Home will worsen over time if Foreign improves in R&D. Ob The Terms of Trade of Home will improve over time if Foreign improves in R&D Oe If Foresgn improves in R&D or Components, gauns from trade could disappear over tume Od The Terms of Trade of Foreign will improve over tume if Home improves in Components
QUESTION 1 Consider the model with R&D and Components and with two countries Home and Foresgn Home has comparative advantage in R&D. Which of the statements below is TRUE? Oa The Terms of Trade of Home will worsen over time if Foreign improves in R&D. Ob The Terms of Trade of Home will improve over time if Foreign improves in R&D Oe If Foresgn improves in R&D or Components, gauns from trade could disappear over tume Od The Terms of Trade of Foreign will improve over tume if Home improves in Components
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 1QCMC
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