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Benefits and Costs of International Trade
Benefits of international trade:
countries gain from exchange and specialization;
industries experience greater economies of scale;
households and firms have greater product variety;
competition is increased; and
resources are allocated more efficiently – increase real GDP.
Opponents of free trade point to the potential for greater income inequality and the loss of jobs in developed countries as a result of import competition.
Exchange Rates, International Trade, and Capital Flows:deficit surplus must be:Capitalapproachexpendituresaving decisions.
Effects of Alternative Trade Policies:Effects of Alternative Trade Policies
Benefits and Costs of Regional Trading Areas:integration.cultureFirstSecondintegration limits the extent to which member countries can pursue independent economic and social policies.
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