We know that industrial countries tend to trade with other industrial countries. This pattern counters the:
a. preference theory of comparative advantage.
b. factor abundance theory of comparative advantage.
c. concept of intraindustry trade.
d. product life cycle theory of comparative advantage.
e. human skills theory of comparative advantage.
Question 2
Raising an existing tariff on grapes from Chile will:
a. increase U.S. imports of Chilean grapes.
b. decrease U.S. consumption of domestically produced grapes.
c. decrease total U.S. consumption of grapes.
d. do all of the above.
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