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Unformatted text preview: As a result of free trade, consumers in the exporting country are better-off compared to pre-trade. As a result of free trade, producers in the importing country are worse-off compare to pre-trade. The importing country always gains more from international trade than the exporting country. 4. Derive the export demand and import supply functions. 5. Do the following questions from the end of chapter 2 in the text the answers are provided in the end of the text questions 1, 3, 5, 9, and 11....
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