We have focused on the case of trade involving only two countries. Suppose that there are many

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We have focused on the case of trade involving only two countries. Suppose that there are many countries capable of producing two goods and that each country has only one factor of production, labor. What could we say about the pattern of production and trade in this case? (Hint: Try constructing the world relative supply curve.)

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International Trade Theory And Policy

ISBN: 978-1292417233

12th Global Edition

Authors: Paul Krugman ,Maurice Obstfeld ,Marc Melitz

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