Suppose that, a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, the price of that good will ________ when the economy goes from closed to open for trade.

Question

Quizplus · Accepted Answer

If the price of a good or service in a closed economy is lower than the world price, and that economy opens itself up to trade, the economy will tend to become a net exporter of that good or service.

Suppose That, a Country with a Closed Economy Opens Itself