Why is product differentiation by itself in capable of explaining intra-industry trade why does the explanation of intra- industry trade require both product differentiation and economies of scale
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Why is product differentiation by itself in capable of explaining intra-industry trade
why does the explanation of intra- industry trade require both product differentiation and economies of scale
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- Why is product differentiation by itself incapable of explaining intra-industry trade? Why does the explanation of intra-industry trade require both product differentiation and economies of scale?Why does the explanation of intra-industry trade require both product differentiation and economies of scaleWhy is product differentiation, by itself ,incapable of explaining intra-industry trade?
- For the case of an industry that you know well, describe the extent to which firms in that industry are open to competition from internationalGive a discussion from the economies of scale perspective on the statement “trade need not be the result of comparative advantage”. And derive the relationship between the number of firms (n) and the price each firm charges (P) for the model of monopolistic competition. [Hint: P = c + 1/ (b * n); c is the marginal cost; b is a positive constant term representing the responsiveness of a firm’s sales to its prices]How should a U.S. firm that currently exports to only ASEAN countries respond to the creation of a single market in this regional grouping?
- _______ Because it has not been around long enough toestablish itself, the Russian automobile industrycould be classified as a(n)a. hopeless industry.b. soft industry.c. infant industry.d. protected industry.e. toddler industryCompare the persistence in the export of Opium to China and the persistence of the export of Opium and its derivative into the USA?Evaluate the following statements.10. (4) Why would you expect sellers of branded goods with high upfront research and development costs to be more interested in free trade than producers who do not incur any fixed costs? 11. (8) Focus attention on the Ricardian model, the Heckscher-Ohlin model, and the monopolistic competition model if trade. Consider the intra-industry trade index for each model. What value for the index does each models predict? Explain your answer.