How do lower volumes of trade impact the processes of product price equalization and factor price equalization?

Show Answers

They interrupt the completion of product price equalization and factor price equalization.They guarantee that product price equalization and factor price equalization fully occur.They remove all potential benefits achievable from international trade.They optimize all possible advantages from international trade.They accelerate the convergence of prices and factors across countries.

Explanation

Reducing the amount of trade disrupts the full realization of product price equalization and factor price equalization, preventing these processes from reaching completion.