When the cost of international transportation falls (assume a technical change) both exporters and importers benefit.

Draw and explain an appropriate economic model(s) that illus-trate(s) the impact of falling transportation costs on importers and exporters.

Clarify in your answer, why the benefits of lower transportation costs may not be divided equally between the importer and exporter. Explain the conditions under which importers could gain more of the benefits of lower transportation costs than exporters.