Need economics help with a Comparative advantage and internal economies of scales

Dec 14th, 2015
Price: $5 USD

Question description

Evaluate the merits of the following statement: "Trade based on comparative advantage involves benefits in a two-country world where the countries in question are dissimilar, while trade based on internal economies of scale is mutually beneficial when trading partners are similar." Why does trade based on external economies of scale deliver ambiguous effects? Explain your answer. 

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(Top Tutor) Daniel C.
School: University of Virginia

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Dec 14th, 2015
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