True or False? According to the Basic Trade Model, if we were to think of the WTO as a big free-trade club, where member-countries trade freely with each other and do not trade at all with non-members, then a country like India (already a WTO member at the time that China joined the WTO in 2001) should have opposed the WTO membership application of China. Explain and draw a model to support your answer.

True or False? According to the Basic Trade Model, if we were to think of the WTO as a big free-trade club, where member-countries trade freely with each other and do not trade at all with non-members, then a country like India (already a WTO member at the time that China joined the WTO in 2001) should have opposed the WTO membership application of China. Explain and draw a model to support your answer.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter34: World Trade Equilibrium

Section: Chapter Questions

Problem 10E

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4. True or False? According to the Basic Trade Model, if we were to think of the WTO as a big free-trade club, where member-countries trade freely with each other and do not trade at all with non-members, then a country like India (already a WTO member at the time that China joined the WTO in 2001) should have opposed the WTO membership application of China.

Explain and draw a model to support your answer.

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Step 1: Define international trade hypotheses

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Step 2: Explain the stance of India

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Step 3: Look into the gains from trade

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