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Country A and B are two main trading partners. A sells mainly raw materials to B, while B sells mainly consumption goods to A. There

Country A and B are two main trading partners. A sells mainly raw materials to B, while B sells mainly consumption goods to A. There was a major technological breakthrough in the extraction technology which drastically reduced the cost of production in country A

i) Describe the initial set-up between the two economies(5Mks)

11) Analyse the effects of thee change on the two economies (5Mks)

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