In some simple models of trade, a country may choose to specialize in the production of a single good. Which is not an argument against specializing in a single good in the real world? Unexpected events such as natural disasters or sudden changes in taste and demand could cripple a single industry. New technology or cheaper substitutes could replace the good. Curved production possibilities curves suggest increasing costs and diminishing returns. Specialization in a single good makes dumping easier and more effective.

Upper a report about the decline of western investment in third world countries included this: "after years of daily flights comma several european airlines halted passenger service. foreign investment fell 400 percent during the 1990 s." what is wrong with this statement? choose the correct answer below. a. if foreign investment fell by 100 % comma it would be totally eliminated comma so it is not possible for it to fall by more than 100 %. b. the actual amount of the decrease in foreign investment is less than 100%. c. if foreign investment fell by 100%, it would be cut in half. thus, a decrease of 200% means that it would be totally eliminated, and a decrease of more than 200% is impossible. d. the statement does not mention the initial amount of foreign investment.