For several hundred years until the beginning of World War I in 1914, much of the Arab world was ruled by the Ottoman Empire, based in Istanbul in present-day Turkey.Morocco, however, was never part of the Ottoman Empire.Consider two entrepreneurs planning to import power-driven equipment from Europe and use it to produce clothing.One entrepreneur is based in Morocco and will market his clothing there, the other is based in Istanbul and will market his clothing to the Ottoman Empire.

a. Make an argument that, all else equal, the entrepreneur based in Istanbul will have more success competing against handicraft clothing than the entrepreneur based in Morocco.

b. Today, any clothing sold from Turkey to countries that used to be part of the Ottoman Empire would be counted as exports and subject to tariffs.Suppose that, before 1914, no tariffs or other government barriers to trade were imposed within the Ottoman Empire.

1) Specify two barriers to "exports" that the entrepreneur based in Istanbul will face when marketing his clothing to the rest of the Ottoman Empire.

2) Why might one of these barriers be lower than for a Southern European entrepreneur who tries to sell in the same market during this period?