Why are firms engaged in intraindustry trade less likely to
Why are firms engaged in intra-industry trade less likely to seek protection from imports?
| None of the above. |
Solution
Option 2. Workers in firms in the same sector can shift more easily to production of another product in that sector.
Explanation: When firms are engaged in intra-industry trade, the workers are more likely to have knowledge about various products being produced in the same industry by various firms. So, workers can be more easily shifted from one product to another product.
