total production) than smaller countries? a) Smaller countries tend to be poor so there are not enough consumers within the country and they must export much of what they produce. b) Larger countries import rather than export so their export as a percentage of total production is relatively small. c) Larger countries have enough people to take advantage of division of labor & specialization within the country while smaller countries rely on international trade to get these benefits. d) Smaller countries are forced to sell a large percentage of their production while larger countries have enough economic and political power to avoid international trade
total production) than smaller countries? a) Smaller countries tend to be poor so there are not enough consumers within the country and they must export much of what they produce. b) Larger countries import rather than export so their export as a percentage of total production is relatively small. c) Larger countries have enough people to take advantage of division of labor & specialization within the country while smaller countries rely on international trade to get these benefits. d) Smaller countries are forced to sell a large percentage of their production while larger countries have enough economic and political power to avoid international trade
Chapter18: International Trade And Comparative Advantage
Section: Chapter Questions
Problem 2TY
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Why do larger countries typically have smaller export markets (as a percentage of total production) than smaller countries?
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