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North America exports clothing to the European Union, and the European Union exports clothing to ...

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North America exports clothing to the European Union, and the European Union exports clothing to ...

North America exports clothing to the European Union, and the European Union exports clothing to North America. This is a(n)

▸ violation of the law of comparative advantage.

▸ obvious failure to take advantage of specialization.

▸ example of the inefficiency of trade patterns.

▸ general conclusion of the Heckscher-Ohlin theory.

▸ likely result of economies of scale and product differentiation.

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Microeconomics

Edition: 17^th

Author: Ragan

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