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19 July, 12:34

True or False: Without engaging in international trade, Freedonia and Desonia would not have been able to consume at the after-trade consumption bundles. (Hint: Base this question on the answers you previously entered on this page.)

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  1. 19 July, 16:31
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    True

    Explanation:

    In case of Freedonia and Desonia, they specialize in food products that are specific to their region and provide a high quality good. Also, they have a comparable advantage which means that they produce goods at a lower cost as well. Therefore, they would not be able to consume at the after-trade consumption bundles as they will not be trading their goods with other products and services that come in as part of the trade bundle.
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