Utilizing both offer curves and a two by two payoff matrix

Reference no: EM1336654

Optimal foreign economic policy

Using both offer curves and a two by two payoff matrix, determine the optimal foreign economic policy of a hegemon.

Explain why other non-economic foregin policy goals may cause a hegemon to shift its policy away from its optimal foreign economic policy to a policy closer to free trade. Either in a partial or a general equilibrium setting explain how domestic economic interests may further shift a country's foreign economic policy either toward free trade or toward protectionism.

Reference no: EM1336654

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