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True or False? Explain your answer. 1. If a Chinese business buys a Tesla car, this would be anexample of foreign direct investment inflow for

True or False? Explain your answer.

1. If a Chinese business buys a Tesla car, this would be anexample of foreign direct investment inflow for the US.

2. In the presence of external economies of scale, trade willunambiguously improve welfare in the exporting country and worsenwelfare in the importing country.

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