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The Focal Point Phenomenon

Question 78

Multiple Choice

The focal point phenomenon:


A) explains why production tends to take place in countries that have fewer trade barriers.
B) explains why production tends to take place in a few select countries rather than being evenly distributed across countries.
C) argues that transportation costs make it unprofitable to locate production in other countries.
D) argues that trade barriers force countries to locate production in other countries.

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