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Now allow Home and Foreign to trade with each other. Assume that there are no barriers to trade. Home's autarky price is $1, Foreign's autarky
Now allow Home and Foreign to trade with each other. Assume that there are no barriers to trade. Home's autarky price is $1, Foreign's autarky price is $2. Based on your answer to question 1, can you predict the trade pattern, that is, what country will export wheat and what country will import wheat? Explain
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
2nd edition
1464187029, 978-1464189104, 1464189102, 978-0716759751, 716759756, 978-1464187025
