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Why do countries trade?
International trade is the swap of goods and services among countries. Trade enhances consumer choice and complete welfare.
Various countries have various types of factor endowments as like climate, skilled labour force and also natural resources vary among nations. Therefore several countries are better placed in the production of specific goods than all others.
Economic theory predicts all countries achieve when they specialise and trade the goods wherein they have a comparative benefit. It is true even if one nation has an absolute benefit over the other country.
Net exports normally decrease with the effect when aggregate output decline. When a concretionary fiscal policy is implemented net exports will go up . When government maintain the
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why does the quantity of salt demanded tend to be unresponsive to change in its price?
Keynesian economics policy could be distinguished from the classical economics as the main through of the classical theory is that supply creates its own demand which is described
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What is dependency theory? Dependency Theory: Dependency theory uses economic and political theory to describe how the procedure of international trade and domestic deve
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