Suppose a country,whose production and consumption of cell phones is large relative to the world market,has just entered the global market.If the country is a net-importer of cell phones,we would expect:

Question

Quizplus · Accepted Answer

The country's entry into the global market will increase the world supply of cell phones, leading to a decrease in world price. The country's net imports will also increase the world demand for cell phones, leading to an increase in world quantity.

Suppose a Country,whose Production and Consumption of Cell Phones Is