1.Most foreign investment is today directed toward high income countries because

a. there are tax trades and subsidies available

b. markets are larger so transportation costs are minimised by producing near the market

c. high income countries are politically stable

d. there are no economies of scale in low-income countries

2.When there are external economies of scale in an industry

a. firm costs decrease as individual firms expand output

b. firm costs decrease as the industry expands in size

c. firms will generally increase their size

d. firms must be located in different regions

3.The pattern on protection in industrial countries is particularly harmful to the interests of

a. low income developing countries

b. high income industrial countries

c. Asian nations

d. European nations