Effects of trade barriers

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1. Could a nation's production possibilities curve shift outward? Describe what such a shift would mean, and discuss at least two events that might reasone such a shift to occur.

2. By 1993, nations in the European Union had eliminated all barriers to flow of goods, services, labor, and capital across their borders. Even such things as consumer protection laws and the types of plugs needed to plug in appliances have been standardized to ensure that there will be no barriers to trade. How do you think this elimination of trade barriers affected EU output?

Reference no: EM1373189

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