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Question :
(a) Using a simple example, diffrence between inter - industry trade and intra - industry trade?
(b) Illustrate the reasons for the existence of external economies of scale.
(c) Given that countries trade under the Heckscher - Ohlin model assumptions, construct the production possibility frontier.
(d) Analyse the welfare effect a tariff on a small importing country.
If a person literally had “nothing else to do,” (a) What would be the opportunity cost of doing this homework?
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