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9:12 PM Sun Sep 21 . . . 14% ECON 474 CH | 3 https://www.c | A Textbook Acc G meet the fock G monopolist su Courses My Courses MindTap X Chat Thread + ong.cengage.com 9 . . . CENGAGE | MINDTAP Q Search this course ? Chapter 03 Homework X Back to Assignment A-7 Attempts 0 Keep the Highest 0 / 1 4. Why similar countries trade Consider two hypothetical countries called Cassvania and Koopmansville. The countries have similar production technology, and yet they specialize and trade with each other. EI Read the following details and determine why international trade is possible between these two countries. Cassvania has many more universities than Koopmansville. The top scientists who graduate in Cassvania are very happy there and typically do not want to move. As a result, there are many more research scientists looking for work in Cassvania, making it cheaper to hire them there than in Koopmansville. Because of this, many pharmaceutical companies are established in Cassvania to be close to a cheaper labor source. Cassvania produces important prescription drugs and exports them. ? Despite their similarities, Cassvania and Koopmansville are able to trade because of economies of scale. C+ Grade It Now Save Continu Continue without saving