Scale
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Production of a particular product is characterized by external scale economies and the product is produced in two countries, but there is no trade in the product. If trade in the product is opened, why would production of that product eventually occur in only one of the countries?
200 word minimum
(2012). International economics. (Vol. 1, pp. 106-107). The McGraw-Hills Companies.
In-text citation
(International economics, 2012)
No Wiki, no dictionary.com, please cite all work.
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