Asked by Colton Hiler on Jun 28, 2024
Verified
Suppose the world price of coffee is $2 per pound and Brazil's domestic price of coffee without trade is $3 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?
Importer or Exporter
A business or country that buys goods from abroad (importer) or sells goods to foreign countries (exporter).
World Price
The global equilibrium price of a good or service, determined by the worldwide demand and supply.
- Decide if a nation will emerge as an importer or exporter through scrutiny of domestic and global price levels.
- Recognize the dialogue between prices in domestic markets, international gears, and the influence of trade policies on market dynamics.
Verified Answer
NG
Learning Objectives
- Decide if a nation will emerge as an importer or exporter through scrutiny of domestic and global price levels.
- Recognize the dialogue between prices in domestic markets, international gears, and the influence of trade policies on market dynamics.