FS08EC2106_L9 - ECON 2106-C B-C KIM Application...

Info icon This preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 2106-C B-C KIM
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Application: International Trade What determines whether a country imports or exports a good? Who gains and who loses from free trade among countries? What are the arguments that people use to advocate trade restrictions?
Image of page 2
THE DETERMINANTS OF TRADE The effects of free trade can be shown by comparing the price of a good without trade and the price of the good. If a country has a comparative advantage, then – the domestic price will be below the world price, and the country will be an of the good. – Otherwise, the domestic price will be higher than the world price, and the country will be an .
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon