Which country should be concerned about the expansion

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Reference no: EM13222506

When China's clothing industry expands, the increase in world supply lowers the world price of clothing.

a) Draw an appropriate diagram to analyze how this change in price affects consumer surplus, producer surplus, and the total surplus in a nation that imports clothing, such as the US.

b) now draw an appropriate diagram to show how this change in price affects consumer, producer and total surplus, in a nation that exports clothing such as the Dominican Republic.

c) which country should be concerned about the expansion of the Chinese textile industry? Which country should be applauding it? Explain.

Reference no: EM13222506

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