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Assume that in the global market place for a hypothetical commodity where exporters and importers interact, Home represents exporters and Foreign represents importers. In this
Assume that in the global market place for a hypothetical commodity where exporters and importers interact, Home represents exporters and Foreign represents importers. "In this two -country situation, the supply (curve) of exports is derived from the excess supply (surplus) in Home's market for that good and the demand (curve) for imports arises from the excess demand (shortage) in Foreign 's market." Agree or disagree? Illustrate your answer EITHER numerically OR diagrammatically. - detailed explanation needed
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