Ashland is considering whether to engage in the international trade of rice and furniture. Suppose that the

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Ashland is considering whether to engage in the international trade of rice and furniture. Suppose that the world price of rice is lower than Ashland’s no-trade price, but its no-trade furniture price is lower than the world price. Assume that land is specific to the production of rice and that labor is free to move across sectors. Do you think the landowners will support the move to free trade? Explain 

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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