Q.
Pakistan will export agriculture products while Japan will export Cars. Using hypothetical numbers discuss graphically the gains from trade for both countries.

Question

11-07-2022
Social Studies

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Q.
Pakistan will export agriculture products while Japan will export Cars. Using hypothetical numbers discuss graphically the gains from trade for both countries.

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Tundexi Tundexi · Answer 1 · 2022-07-12T20:19:08+02:00

The gains from trade for the countries will grow significantly because of the mutual trading of agriculture products and cars.

What is the gains from trade?

When two countries agree to trade at beneficial terms by allowing one another to import good at a lower opportunity cost than the cost for them to produce the good domestically, then, there is a mutual gains from trade for both countries.

Majority of countries benefit from mutual trading because its increases competition and lowers world prices which provides benefits to consumers by raising the purchasing power of their own income.

Q. Pakistan will export agriculture products while Japan will export Cars. Using hypothetical numbers discuss graphically the gains from trade for both countries.

Respuesta :

What is the gains from trade?

Otras preguntas

Q.
Pakistan will export agriculture products while Japan will export Cars. Using hypothetical numbers discuss graphically the gains from trade for both countries.