What determines which good country should produce and export, Macroeconomics

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What determines which good country should produce and export

Problem

1. (Reasons for International Specialization) What determines which goods a country should produce and export?

2. (Tariffs) High tariffs usually lead to black markets and smuggling. How is government revenue reduced by such activity? Relate your answer to the graph in Exhibit 5 in this chapter. Does smuggling have any social benefits?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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