Question
1.Are there gains from trade for the United States as a whole? Why? Please explain. 2.Now, let assume that because Home country engaged in trade,
1.Are there gains from trade for the United States as a whole? Why? Please explain.
2.Now, let assume that because Home country engaged in trade, it caused the relative price of manufactures (PM ) in Home country to increase, (while the price of agriculture ,PA, remainedthe same).Please explain how this increase would affect the worker's nominal wage and real wage compared to autarky (no trade). (Hint: nominal wage = MPL*P)
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International Business
Authors: John Daniels, Lee Radebaugh, Daniel Sullivan
16th edition
134200055, 978-0134201542, 013420154X, 978-0134200057
