International macroeconomics question

a) Why do economists typically view trade as beneficial to all countries involved? In your answer, explain what are the gains to trade. Are all individuals within a country better o↵ as a result of trade with other countries? Explain your reasoning.

b) Consider a country that adopts a fixed exchange rate regime. What are the potential benefits of adopting a fixed exchange rate regime? What are the potential costs of adopting a fixed exchange rate regime?

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a Economists typically view trade as beneficial to all countries involved due to the concept of comparative ... View the full answer