Trade flows likely to be unequal even with unhindered trade

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Suppose that all three nations agree to remove remaining barriers to trade among the entire set, so that the world becomes a free trade area. Country C is twice as far from both country A and country B as country A and country B are from one another. In addition, country A and country B are of equal size, but country C is half as large. Are trade flows likely to be unequal even with unhindered trade? If so, how?

Reference no: EM131236682

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