Intra-industry trade will tend to dominate trade flows when which of t

Intra-industry trade will tend to dominate trade flows when which of the following exists?

A) small differences between relative country factor availabilities
B) large differences between relative country factor availabilities
C) homogeneous products that cannot be differentiated
D) constant cost industries
E) uneven distribution of abundant resources between two countries

 

ANSWER

A

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