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Question1. Intra-industry trade involves nations exporting and importing the similar goods. Why would nations export and import same or similar items?
Question2. You are an adviser to a foreign government. Until now, government policy has been to severely limit imports, which has resulted in a low level of exports. The government is now planning a policy to allow freer trade. What are the three strongest reasons that you can offer to the government about why the policy shift will be good for the country?
Question3. Do you agree or disagree with this statement? "Opening up free trade hurts people in import-competing industries in the short-run, but in the long-run, when people and resources can move between industries, everyone gains from free trade." Explain.

International Economics, Economics

  • Category:- International Economics
  • Reference No.:- M9310446

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