World Price and Comparative Advantage If the country does not have a comparative advantage. then the domestic price will be higher than the world price, and the country will be an importer of the good. H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. World Price and Comparative Advantage If the country does not have a comparative advantage, then the domestic price will be higher than the world price, and the country will be an importer of the good
Harcourt, Inc. items and derived items copyright C 2001 by Harcourt, Inc International Trade in an Exporting Country. Price of steel Domestic upply Price after World trade price Price before I trade d Exports Domestic demand Domestic Domestic anti quantit quantity Steel demanded supplied
Price of Steel 0 Quantity of Steel Domestic demand International Trade in an Exporting Country... Domestic supply World price Price after trade Exports Domestic quantity demanded Domestic quantity supplied Price before trade Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc
How Free Trade affects Welfare in an Exporting Country. Price of steel Domestic supply Exports Price after World trade B price Price before....... trade Domestic demand anti Steel H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Price of Steel 0 Quantity of Steel World price Domestic demand How Free Trade Affects Welfare in an Exporting Country... Domestic supply Price after trade Price before trade A B C D Exports
How Free Trade affects Welfare in an Exporting Country. Price of steel Domestic upply Consumer surplus before trade Price after World trade B price Price before trade Producer surplus Domestic before trade demand anti Steel H arc Inc. items and derived items c ht o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Price of Steel 0 Quantity of Steel World price Domestic demand How Free Trade Affects Welfare in an Exporting Country... Domestic supply Price after trade Price before trade A Consumer surplus before trade B C Producer surplus before trade
How Free Trade affects Welfare in an Exporting Country. Price of steel Domestic Consumer surplus supply after trade Exports Price after World trade B price Price before l.......\ trade Producer surplus after trade Domestic demand anti Steel H arc Inc items and derived items copyright o 2001 by Harcourt, Inc
Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. Price of Steel 0 Quantity of Steel World price Domestic demand How Free Trade Affects Welfare in an Exporting Country... Domestic supply Price after trade Price before trade A Consumer surplus after trade C B Producer surplus after trade D Exports