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Button is a labor-intensive good and the world production of buttons is highly concentrated in China. Vietnam only produce a small amount of buttons. Suppose
Button is a labor-intensive good and the world production of buttons is highly concentrated in China. Vietnam only produce a small amount of buttons. Suppose that Vietnam has a low wage rate comparing with China. Suppose the production technology of buttons is characterized by external economies of scale. Will Vietnam import or export buttons after the trade openings between Vietnam and China? Will the trade opening be good to Vietnam? Explain
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