Which of the following statements regarding the Melitz (2003) model of international trade with heterogeneous firms is TRUE: Question 5 Answer a. Trade liberalisation (brought about by a bilateral reduction in iceberg trade costs) induces the most productive firms in an industry to expand at the expense of the least productive firms b. Individuals who worked in the least productive firms that exit the market after trade is liberalised, become unemployed c. Trade liberalisation (brought about by a bilateral reduction in iceberg trade costs) induces existing exporters to invest in new technology that increases their productivity d. The variety of goods available to consumers unambiguously increases after trade liberalisation e. Trade liberalisation (brought about by a bilateral reduction in iceberg trade costs) makes exporters more productive as they learn about best international practices from foreign exporters