Question

Transportation cost of trade affects?​

Answer 1

Answer:

Transport costs, much in the same way as tariffs, penalize goods produced in multiple stages across different countries, since producers need to pay for moving goods at each stage of the production process. A decline in transport costs will therefore be particularly beneficial for trade in vertically specialized goods.

Explanation:

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Answer 2

Answer:

Transport costs, much in the same way as tariffs, penalize goods produced in multiple stages across different countries, since producers need to pay for moving goods at each stage of the production process. A decline in transport costs will therefore be particularly beneficial for trade in vertically specialized goods.

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