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Suppose That Australia Has a Comparative Advantage Over the New

Question 142

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Suppose that Australia has a comparative advantage over the New Zealand in providing financial services and New Zealand has a comparative advantage over Australia in producing milk products.By reducing trade barriers, CER allowed both Australia and New Zealand to export more of the products in which it enjoys a comparative advantage.Do all people in both countries benefit from this free trade agreement? Explain.

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While overall economic wellbeing in both...

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