Aghion, Philippe (contributor); Antràs, Pol (contributor); … - 2004 - [Elektronische Ressource]
’s expansion of
imports. But country c increases its imports from b in order to allow a to purchase goods in c. Yet standard
rules … that c imports from b to be exported from c to a in order to meet a’s demand.
21
This example delivers precise answers …
equilibrium outcome, leading to worldwide free trade. A model of international trade is
then used to illustrate equilibrium …