Law of demand to operate internationally
Problem: Other things being equal, a rise in a country's terms of trade increases its welfare. What do you think would happen if we relax the ceteris paribus assumption and allow for the law of demand to operate internationally?
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Other things being equal, a rise in a country's terms of trade increases its welfare. What do you think would happen if we relax the ceteris paribus assumption and allow for the law of demand to operate internationally?
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