Why trade beneficial to home and foreign

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Reference no: EM1369476

Q. Home and Foreign are now open to trade. Choose a possible relative world equilibrium price of cars after trade (PC/PS). F. At this world relative price, show possible trade equilibrium in Home and Foreign on your graph. G. What can you say about production of cars and sugar in Home? What can you say about consumption of cars and sugar in Home? On your graph, label production and consumption of cars and sugar in Home. H. Is trade beneficial to Home and Foreign? Why?

Reference no: EM1369476

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