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Question 2 5 The reason why the conclusions of the Ricardian trade theory sometimes contradict real outcomes is that: in reality individuals / countries rarely
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The reason why the conclusions of the Ricardian trade theory sometimes contradict real outcomes is that:
in reality individualscountries rarely specialize according to comparative advantage.
the assumptions of this model are too simplified to reflect the real world.
trade does not occur under barter system any more.
trading partners often misrepresent their products to each other.
trade relationships are usually long and therefore often motivated by factors other than profit.
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