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Thanks for the review
what if the equilibrium relative price is more close to Home's domestic(autarkic) price ration ? how is the gains from trade affected?
Nice video! One question: why does home country export cloth to foreign country in the first place? And why does foreign country ship food to home country?
Generally, countries specialize in the commodity with which they have the comparative advantage.
Thanks for the review
what if the equilibrium relative price is more close to Home's domestic(autarkic) price ration ? how is the gains from trade affected?
Nice video! One question: why does home country export cloth to foreign country in the first place? And why does foreign country ship food to home country?
Generally, countries specialize in the commodity with which they have the comparative advantage.