Marcia Anthony, the Trade Minister, argues that the country should not adopt ISI. She asks you to help her explain the benefits of trade with a diagram. Please draw this diagram and explain its intuition.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
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
Chapter16: Gaining From International Trade
Section: Chapter Questions
Problem 9CQ
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Marcia Anthony, the Trade Minister, argues that the country should not adopt ISI. She asks you to help her explain the benefits of trade with a diagram. Please draw this diagram and explain its intuition.

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