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A. Explains why the United States might export autos and import clothing
B. Explains why the United States might export and import differentiated versions of the same product such as different types of autos
C. Assumes that transport costs are very low or do not exist
D. ignores seasonal considerations for agricultural goods

Correct Answer: Explains why the United States might export and import differentiated versions of the same product such as different types of autos

Last Updated: June 18, 2019