By drawing production possibility frontiers and international price lines, show that trade can be viewed as just
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By drawing production possibility frontiers and international price lines, show that trade can be viewed as just another method of production, where exports serve as “inputs” and imports are “outputs.” In so doing, show that the opportunity to trade always represents a potential Pareto improvement.
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Trade as a Method of Production A Graphical Analysis Trade can be viewed as an alternative method of productionexpanding a countrys consumption possib...View the full answer
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