Which trade pattern is BEST explained by increasing returns? O Nicaragua exports bananas to the United States, and the United States exports airplanes to Nicaragua. O Bangladesh exports clothing to the United States, and the United States exports airplanes to Bangladesh. Taiwan exports cars to the United States, and the United States exports airplanes to Taiwan. O Mexico exports beef to the United States, and the United States exports airplanes to Mexico.

MACROECONOMICS
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Chapter18: International Trade And Comparative Advantage
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Question 5
Which trade pattern is BEST explained by increasing returns?
O Nicaragua exports bananas to the United States, and the United
States exports airplanes to Nicaragua.
Bangladesh exports clothing to the United States, and the United
States exports airplanes to Bangladesh.
Taiwan exports cars to the United States, and the United States
exports airplanes to Taiwan.
O Mexico exports beef to the United States, and the United States
exports airplanes to Mexico.
Transcribed Image Text:Question 5 Which trade pattern is BEST explained by increasing returns? O Nicaragua exports bananas to the United States, and the United States exports airplanes to Nicaragua. Bangladesh exports clothing to the United States, and the United States exports airplanes to Bangladesh. Taiwan exports cars to the United States, and the United States exports airplanes to Taiwan. O Mexico exports beef to the United States, and the United States exports airplanes to Mexico.
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