other countries.
a. Based on what you have learned in this chapter, what is
the connection?
b. Explain why trading with countries that are “most
different” from our own is likely to generate the most
benefits. Which differences are of central importance?
c. Under what circumstances are there no benefits from a
country specializing and trading with other countries?
d. Illustrate the argument from part (c) in a simple diagram
of a country’s production possibilities boundary.
sean pound
(Sean Pound)
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