Comparative advantage important in international trade

Reference no: EM13685032

1. Why is comparative advantage important in international trade?

2. Briefly describe what is meant by the term "externality" and how it occurs

3. Briefly discuss the shortcomings of control regulations and environmental command.

4. Identify the exchange rate that equalizes the prices of internationally traded goods across countries and briefly discuss the main functions this exchange rate serves.

Reference no: EM13685032

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