escription is incorrect ( ) A According to the overlapping demand theory, the intra-industry trade between countries with large income gap will be less. 307 0307 The theory of comparative advantage helps to explain the intra-industry trade between developed countries. The smaller the difference of factor endowments between two countries, the greater proportion of intra-industry trade should be.
escription is incorrect ( ) A According to the overlapping demand theory, the intra-industry trade between countries with large income gap will be less. 307 0307 The theory of comparative advantage helps to explain the intra-industry trade between developed countries. The smaller the difference of factor endowments between two countries, the greater proportion of intra-industry trade should be.
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
Section: Chapter Questions
Problem 1CQQ
Related questions
Question
![lescription is incorrect ( )
A
According to the
overlapping demand
theory, the intra-industry
trade between countries
with large income gap will
be less.
0307
The theory of comparative
advantage helps to explain
the intra-industry trade
between developed
countries.
The smaller the difference
of factor endowments
between two countries,
the greater proportion of
intra-industry trade
should be.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6312c2ba-3ddd-4e1a-91e2-a12af60ced38%2Fd90504dc-874c-43bd-b161-3d9b843cbab0%2Fnbd5wly_processed.jpeg&w=3840&q=75)
Transcribed Image Text:lescription is incorrect ( )
A
According to the
overlapping demand
theory, the intra-industry
trade between countries
with large income gap will
be less.
0307
The theory of comparative
advantage helps to explain
the intra-industry trade
between developed
countries.
The smaller the difference
of factor endowments
between two countries,
the greater proportion of
intra-industry trade
should be.
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