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True/False with explanation According to the Melitz model, exporting firms have higher sales on their domestic market than firms that only serve the domestic market.
True/False with explanation
- According to the Melitz model, exporting firms have higher sales on their domestic market than firms that only serve the domestic market.
- According to the Melitz model, if Brexit raises barriers to trade between the UK and the EU then it will lead to a decline in the average productivity of British manufacturing.
- If the costs of building factories abroad fall, we should see more horizontal FDI and fewer exports, other things being equal.
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