International trade benefits countries by increasing total production and the quantity of goods and services available to

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International trade benefits countries by increasing total production and the quantity of goods and services available to consumers. However, not everyone wins. While trade creates new jobs for firms that export products to foreign markets, companies that are less efficient may shut down and jobs may be lost. Use a diagram to show how import competition from a lower wage country could drive a monopoly out of business.

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Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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