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Author Question: Refer to the figure above. Domestic producers of this product in A would most prefer A) a customs ... (Read 11 times)

Beheh

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on: Jun 30, 2018
Refer to the figure above. Domestic producers of this product in A would most prefer
 
  A) a customs union with C.
  B) a customs union with B.
  C) a free trade agreement with both B and C.
  D) no agreement with either country.

Question 2

What are the benefits of capital mobility?
 
  What will be an ideal response?


al

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

D

Answer to Question 2

The benefits include that investors can put financial capital where it earns the highest return, which raises welfare by putting capital in its most valuable use.


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