Countries X and Y each make goods M and N. They choose to specialise and then trade these goods without restrictions. In which circumstances would the gains from specialisation and free trade be expected to be smallest?
- Amobility of factors of production between goods M and N: high; mobility of factors of production between countries X and Y: high
- Bmobility of factors of production between goods M and N: high; mobility of factors of production between countries X and Y: low
- Cmobility of factors of production between goods M and N: low; mobility of factors of production between countries X and Y: high
- Dmobility of factors of production between goods M and N: low; mobility of factors of production between countries X and Y: low