Essay Problem
International trade can have big effects on domestic markets. For both an import good and an export good (in other words, address each bulleted item below twice-once for import and once for export), describe how opening up to international trade affects the following:
Supply or demand for the particular good,
The competitiveness of that good's market, and
How the change in competitiveness affects equilibrium price and quantity.
Stepping away from the import/export examples, describe how opening up to trade specifically affects a domestic monopoly. Include an explanation, using game theory, of how even a single additional competitor can lead to a market outcome similar to perfect competition.
The response should include a reference list. One-inch margins, Using Times New Roman 12 pnt font, double-space and APA style of writing and citations.