1. (a) How can economies of scale be the basis for international trade?

(b) What is meant by the "new international economies of scale"?

2. (a)What is meant by product differentiation and intra-industry trade?

(b) How does inter-industry trade arise?

(c) What are the benefits of intra-industry trade?

3. (a) How can international trade arise according to the technological gap model?

(b) What criticisms are leveled against this model?

(c) What are the various stages in a product life cycle?