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Consider now a slightly different scenario. The equilibrium price in W is still P W = 1, whereas now P F = 1.01. Moroever, the
Consider now a slightly different scenario. The equilibrium price in W is still P W = 1, whereas now P F = 1.01. Moroever, the initial non discriminatory policy is such that the equilibrium price in H is P H = 1.4. Once again, the Home country is considering whether to enter or not in a CU with F . What is your advice now? What is the intuition for your findings
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International Economics
Authors: Dominick Salvatore
11th edition
978-1118177938, 1118177932, 1119915732, 978-1118476017, 1118476018, 978-1119915737
