(Solved by Humans)-Explain how international trade can create higher total welfare
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- Explain how international trade can create higher total welfare in both the importing and the exporting country. Which agents (from among importing country?s consumers and producers and exporting country?s consumers and producers) are better off, and which are worse off as a result of free trade between the countries?
The effect of free trade can be shown using the demand and supply curves. For an importing country, the
world price is lower than the local price, making the consumer better off and the producers...
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This question was answered on: 10 May, 2025
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