Which of the following statements about the factor-price equalization theory and the effects of transportation costs are correct? Choose all that apply.

Transportation costs and other trade barriers cannot prevent product prices from equalizing.

Differences in transport costs do not effect the comparative advantages of trading nations.

Transportation costs prevent product prices from equalizing.

Workers in trading nations always earn the same wages and capital earns the same interest income.

Free trade, in the absence of transportation costs and other barriers to free trade, tends to equalize product prices and other factor prices.

Which of the following statements about transportation costs are correct? Choose all that apply.

Transportation costs have declined due to improvements for transporting goods.

When transportation costs rise, markets tend to substitute goods that are from closer location.

International transportation costs are increasing everywhere in the world, except in the United States.

The decline in the relative cost of U. S international transportation has contributed to a higher volume of trade.

Since the 1960's, transportation costs, as a percentage of the value of all U. S. imports, increased twofold.