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In the two-country, two-good model, both countries can gain from trade as long as their relative advantages and disadvantages in producing different goods are different.
In the two-country, two-good model, both countries can gain from trade as long as their relative advantages and disadvantages in producing different goods are different.
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In the two-country, two-good model, international trade will cause the two national prices that existed in autarky to move towards a new worldwide equilibrium price.
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False
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