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Principles of Microeconomics, Third Edition
John B. Taylor, Stanford University
Internet Exercises
Chapter 17: The Gains from International Trade


The Case for Open Trade

Questions:

Read the World Trade Organization's document entitled: "Basics: The Case for Open Trade."

  1. In this document, it is argued that economic development will affect a country's competitiveness in particular international markets. Why might this occur? Be specific.
  2. Explain why Paul Samuelson argued that the principle of "comparative advantage" is nontrivial.


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