The African Union brings together 55 developing countries. They decide to use a free-trade model in order to increase trade among member countries. In theory what do free-trade models tend to ignore?
- Aabsolute advantage in terms of lower factor inputs in production
- Ballocation of resources where comparative cost advantage is greatest
- Cthe international division of labour and differences in opportunity cost ratios
- Dtransport costs and inefficiencies in the handling of goods and services