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Suppose an industry is characterized by similar economies of scale in two countries up to a point, at which average costs level off as production
Suppose an industry is characterized by similar economies of scale in two countries up to a point, at which average costs level off as production increases. The industry in country A is a little larger than that in country B, and demand for the products is increasing. (OK, I'm thinking solar panels.) Why would the government of country B be unusually opposed to opening to trade in this product?
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