The figure below depicts the steel market for Portugal, a small nation that is unable to affect the world price. Assume that Germany and France can supply steel to Portugal at a price of $200 and $300, respectively.
Figure 8.2. Portugal's Steel Market
-Consider Figure 8.2.With free trade, Portugal produces 15 tons of steel, consumes 30 tons of steel, and imports 15 tons of steel.
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