Period of trade protection

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Choose one of the given trade models in (a), (b) or (c) to explain each of the following phenomenaJustify your choice in one or two sentences, using the assumptions and/or results of the model. Using a graph, show the price (or relative price) of the import good in the importing country before and after trade.

An industry is better able to compete internationally after a period of trade protection (i.e. after a period of tariffs that protect its domestic industry from competition).

a) Monopolistic Competition

b) Ricardian model

c) External economies of scale

Reference no: EM131263726

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