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Consider two countries that can produce watches. Both are subject to forwardfalling supply curves and are...

Consider two countries that can produce watches. Both are subject to forwardfalling supply curves and are similar with identical curves. In this case, the pattern of international specialization and trade would be a matter of historical accident in the sense that all production will occur in one country that will export to the rest of the world.

This is true or false? Why?Illustrate your answers with graphs. Thanks

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