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Trade with differentiated goods normally provides a form of insurance against disasters, such as floods and fires … affecting also the trading partners are preferred over idiosyncratic shocks. Trade thus increases economic vulnerability to …
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The only way resources can be efficiently allocated in our market system is if prices of resources, goods, and services properly reflect their true value to society. However, because of (a) imperfections in the pricing mechanisms that currently influence private-sector decision making; (b) the...
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