Importing or exporting a good


Problem 1. Will a country do better importing or exporting a good for which it has a comparative advantage? Why?

Problem 2. Why does competition among traders affect how much of the gains to trade are given to the countries involved in the trade?

Problem 3. If you were economic adviser to a country that was following your advice about trade restrictions and that country fell into a recession, would you change your advice? Why, or why not?

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Microeconomics: Importing or exporting a good
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