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.

Source: Money Morning, December 3, 2015 In the News The commodity prices nightmare of 2015 Commodity prices have been decimated in 2015: natural gas down 38.5% and nickel down nearly 43%.

The United States imports nickel from Canada and exports natural gas to Mexico. How do these price falls change the U.S.

gains from trade in each good and the distribution of the gains?

Solutions to Practice Problems