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True or false and explain why. a. Export-biased growth reduces a country's welfare and increases the welfare of foreign countries. b. Trade need not be
True or false and explain why.
a. Export-biased growth reduces a country's welfare and increases the welfare of foreign countries.
b. Trade need not be the result of comparative advantage.
c. Vertical FDI is mainly driven by production cost differences between countries (for those parts of the production process that can be performed in another location).
d. If external economies exist, the pattern of trade could be due to historical accidents.
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