(See related pages)
After reading this chapter you should be able to
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Understand with whom we trade, in what goods we trade, and that international trade benefits both trade partners and why. |
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Know the principles of absolute and comparative advantage and why they are important in proving the benefits from trade. |
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See that there are reasons for limiting trade and know the mechanisms for doing so. |
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Understand that limiting trade protects some industries and jobs, but at a very high cost. |
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See that the use of trade as a diplomatic weapon has been largely a failure. |