Asked by
Mary Jane Leones
on Nov 17, 2024
Verified
If a country allows free trade and its domestic price for a given good is lower than the world price, then it will import that good.
Free Trade
An economic policy that allows imports and exports between countries without tariffs, quotas, or other restrictions.
Domestic Price
The price of goods or services within a country's borders, exclusive of international factors.
World Price
The price at which goods trade on the international market, reflecting the global balance of supply and demand for those goods.
- Comprehend the criteria that determine whether a country imports or exports goods.
Verified Answer
NC
Learning Objectives
- Comprehend the criteria that determine whether a country imports or exports goods.
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