Q. Neighboring countries tend to collaborate for all of the following reasons EXCEPT: (Solved)

1. the distance that goods need to travel between such countries is short

2. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates

3. consumers’ tastes are likely to be similar, and distribution channels can be easily established in adjacent countries

4. neighboring countries may have a common history and interests, and may be more willing to coordinate their policies

  • b. neighboring countries tend to be in similar economic situations and therefore are able to better control currency exchange rates
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