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Unformatted text preview: -imports- goods produced abroad and sold domestically -exports- goods produced domestically and sold abroad -good should be produced by the country that has the smaller opportunity cost for that good ex. Japan/US can produce same amt of cars, American produce more food; Japan should produce more cars -Interdependence and trade are desirable because they allow everyone to enjoy a greater quantity and variety of goods and services demand curve- tells us how many units consumers are willing and able to buy at various prices supply curve- how many units producers are willing and able to sell shortage- at a price, demand > supply, buyers>sellers 28/08/2007 19:22:00 28/08/2007 19:22:00...
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