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Free & Foreign Trades

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What are the arguments for & against free trade? How does the internet affect foreign trade?

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Solution Summary

The Internet as a very powerful tool for international trade is featured.

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There are many arguments for free trade. First, the Ricardian and H.O. models show that the world's economy as a whole will benefit. Second, there are often gains from trade for both partners. For instance, those who export a good are getting a higher profit from that good than they could domestically; those who import a good are paying less for it than they could domestically. It is very possible, and common, that free trade creates what is known as Pareto ...

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