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How can someone account for international economic equilibria between/among trading partners if our models are based on supply?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter19: International Finance And The Foreign Exchange Market

Section: Chapter Questions

Problem 7CQ

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Question

How can someone account for international economic equilibria between/among trading partners if our models are based on supply?

Study of economic interactions between countries to understand the patterns of trade among them. It analyzes the difference in resources and consumer preferences across nations and their impact on foreign direct investment, balance of payments, and related metrics.

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