In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario: As a consumer, Simone loves both French wines and Italian wines. Thanks to free trade, she has the option of purchasing either at her local store. The previous scenario represents which of the following benefits of free trade? Increased variety of goods An enhanced flow of ideas Increased competition Lower costs through economies of scale
In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario: As a consumer, Simone loves both French wines and Italian wines. Thanks to free trade, she has the option of purchasing either at her local store. The previous scenario represents which of the following benefits of free trade? Increased variety of goods An enhanced flow of ideas Increased competition Lower costs through economies of scale
Chapter19: International Trade
Section: Chapter Questions
Problem 1.3P
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5. Free-trade benefits
In addition to the positive welfare effects that free trade has on an economy, there are a variety of other benefits of international trade. Consider the following scenario:
As a consumer, Simone loves both French wines and Italian wines. Thanks to free trade, she has the option of purchasing either at her local store.
The previous scenario represents which of the following benefits of free trade?
Increased variety of goods
An enhanced flow of ideas
Increased competition
Lower costs through economies of scale
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