Why does specialization in production with trade proceed only up to the point where relative commodity prices

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Why does specialization in production with trade proceed only up to the point where relative commodity prices in the two nations are equalized? How is the equilibrium-relative commodity price with trade determined?

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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: Mar 16, 2020 02:41 PM

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Why does specialization in production with trade proceed only up to the point where relative commodity prices

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Free trade is a prerequisite for international trade to emerge in the world Without free trade and t... View the full answer

Microeconomics

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