Before the 1980s, China did not trade internationally: It was self-sufficient. Then China began to trade internationally in, among other items, coal and shoes. The world price of coal was less than China’s domestic price and the world price of shoes was higher than its domestic price.

1. Does China import or export coal? Who in China gains and who loses from international trade in coal? Does China gain from this trade in coal? On a graph of the market for coal in China show the gains, losses, and net gain or loss from international trade in coal.

2. Does China import or export shoes? Who in China gains and who loses from international trade in shoes? Does China gain from this trade in shoes? On a graph of the market for shoes in China, show the gains, losses, and net gain or loss from international trade in shoes.