Author Question: In a two country and two product Ricardian model, a small country is likely to benefit more than the ... (Read 53 times)

penza · **on:** Jun 30, 2018

In a two country and two product Ricardian model, a small country is likely to benefit more than the large country because

A) the large country will wield greater political power, and hence will not yield to market signals.
B) the small country is less likely to trade at price equal or close to its autarkic (domestic) relative prices.
C) the small country is more likely to fully specialize.
D) the small country is less likely to fully specialize.
E) the small country can raise wages.

Question 2

To help developing countries expand their industrial base, some industrial countries have reduced tariffs on designated manufactured imports from developing countries below the levels applied to imports from industrial countries.

This policy is called A) export-led growth.
B) generalized system of preferences.
C) Most Favored Nation.
D) reciprocal trade agreement.
E) outsourcing.