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The Rationale of International Trade
Price Difference and International Trade
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adjustment amount autonomous supply balance of payments balance of trade bancor capital flow central bank change in income Clearing Union commodity comparative advantage consequences consume consumption correction currency current account debit deficit country demand schedule deposits determined devaluation disequilibrium domestic elasticity of demand equal Equation equilibrium exceeds exchange rate expand expenditure factor Figure foreign account foreign currency foreign exchange full employment Furthermore gains from trade given gold standard indifference curve inflation interest rate International Monetary Fund International Trade isocost labor level of income Long-term capital ment multiplier mz(sw/sz national income number of pesos opportunity cost output percent price ratio produce production possibilities curve propensity to import propensity to save quota receipts reduced reserves result revenue rise subsidy supply and demand support point Table tariff United W's income yards of textiles Z's exports Z's imports