For any country that allows free trade, the domestic price is equal to the world price. both producers and consumers in that country gain when domestic products are exported, but both groups lose when foreign products are imported. domestic quantity demanded is greater than domestic quantity supplied at the world price. domestic quantity demanded is equal to domestic quantity supplied at the world price.
For any country that allows free trade, the domestic price is equal to the world price. both producers and consumers in that country gain when domestic products are exported, but both groups lose when foreign products are imported. domestic quantity demanded is greater than domestic quantity supplied at the world price. domestic quantity demanded is equal to domestic quantity supplied at the world price.
Chapter18: International Trade And Finance
Section: Chapter Questions
Problem 18SQ
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Transcribed Image Text:For any country that allows free trade,
the domestic price is equal to the world price.
both producers and consumers in that country gain
when domestic products are exported, but both
groups lose when foreign products are imported.
domestic quantity demanded is greater than domestic
quantity supplied at the world price.
domestic quantity demanded is equal to domestic
quantity supplied at the world price.
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