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Consider two countries in the immobile factor model. Once they begin to trade according to their absolute advantages, the shift in supply of the goods
Consider two countries in the immobile factor model. Once they begin to trade according to their absolute advantages, the shift in supply of the goods causes: no change in the price of the export good. the price of the export good to rise. the price of the importcompeting good to rise. an increase in the prices of both goods. a fall in the prices of both goods.
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