Asked by ESTELA LUCCHESI on Apr 27, 2024
Verified
Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?
World Price
A product or service's worldwide market value, affected by the international balance of supply and demand.
Importer or Exporter
An entity that buys goods and services from a foreign country (importer) or sells them to a foreign country (exporter).
- Determine the potential for a country to engage in importing or exporting activities based on the differential between domestic and international pricing.
- Comprehend the synergy among national prices, global economic rates, and trade provisions in dictating the flow of market activities.
Verified Answer
SK
Learning Objectives
- Determine the potential for a country to engage in importing or exporting activities based on the differential between domestic and international pricing.
- Comprehend the synergy among national prices, global economic rates, and trade provisions in dictating the flow of market activities.