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Author Question: The graph above shows domestic supply and demand with trade. With trade, this country can purchase ... (Read 130 times)

jessicacav

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on: Jun 30, 2018
The graph above shows domestic supply and demand with trade. With trade, this country can purchase at the world price, Pw. Which of the following areas represents producer surplus with trade?
 
  A) Pw-A-0
  B) Pw-B-Qd-0
  C) P1-B-Pw
  D) P1-B-A-0

Question 2

Explain why China and India are considered disruptive to the world's status quo.
 
  What will be an ideal response?


janieazgirl

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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

History tells us that when world powers emerge, it usually creates economic, political, and military challenges for other nations and leads to a period filled with transitions and tensions. This is particularly true in the case of China. China's enormous size, as the second largest economy in the world, together with its aggressive foreign investment and trade policies, and its historically unprecedented rate of growth, have caused it to be more disruptive of the status quo as it has become integrated with world markets.


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