Consider two hypothetical countries called Cassvania and Koopmansville. The countries have similar production technology, and yet they specialize and trade with each other. Read the following details and determine why international trade is possible between these two countries All of the residents of Cassvania enjoy smoking cigarettes, while only a few residents in Koopmansville smoke. Cassvania has become a major exporter of cigarettes because many tobacco firms have chosen to locate their factories in Cassvania to cut down on shipping costs to most of their consumers. Koopmansville has put its resources toward producing sugar, a good it exports in exchange for cigarettes internal external Despite their differences, Cassvania and Koopmansville are able to trade because of external economies of scale

James river jewelry is a small jewelry shop. while james river jewelry does sell typical jewelry purchased from jewelry vendors, including such items as rings, necklaces, earrings, and watches, it specializes in hard-to-find asian jewelry. although some asian jewelry is manufactured jewelry purchased from vendors in the same manner as the standard jewelry is obtained, many of the asian jewelry pieces are often unique single items purchased directly from the artisan who created the piece (the term manufactured would be an inappropriate description of these pieces). james river jewelry has a small but loyal clientele, and it wants to further increase customer loyalty by creating a frequent buyer program. in this program, after every 10 purchases, a customer will receive a credit equal to 50 percent of the average of his or her 10 most recent purchases. this credit must be applied to the next (or 11th) purchase.