Answer the following two questions: Rauch (1999) argues and shows empirically that product-specific information costs create a barrier to trade…
Answer the following two questions:
a. Rauch (1999) argues and shows empirically that product-specific information costs create a barrier to trade across countries. Explain.
b. Explain how being geographically “remote” from third-country trading partners can increase the bilateral trade flows between two countries.
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