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What happens to the price of domestically scarce factors of production when acountry opens up to trade? What happens to the price of domestically abundantfactors of production?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter33: International Trade

Section: Chapter Questions

Problem 16RQ: Are the gains from international trade more likely to be relatively more important to large or small...

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

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