Question about standard trade model

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Reference no: EM1376426

The Internet has permited for raised trade in services sch as programming and technical support, a development that has reduced the prices of such services relative to manufactured goods. India in particular has been recently viewed as an exporter of technology-based services, an area in which the United States had been a major exporter. Using manufacturing and services as tradable goods, create a standard trade model for the US and Indian economies that shows how relative price declines in exportable services that lead to the "outsourcing" of services can reduce welfare in the United States and increase welfare in India.

Reference no: EM1376426

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