in a two-nation model, international equilibrium is determined by the _ of one country and the _ of the other country.

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19-12-2022
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in a two-nation model, international equilibrium is determined by the _ of one country and the _ of the other country.

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abhinavjh321 abhinavjh321 · Answer 1 · 2022-12-22T11:42:54-05:00

in a two-nation model, international equilibrium is determined by the import demand of one country and the export supply of the other country.

Export demand refers to foreign demand for domestically produced goods and services. Ultimately, these goods are exported to expats. Import demand refers to the demand of domestic residents for goods and services produced abroad. Imported G&S is not part of his GNP in the country.

Imports and exports are important for economic development and growth because not all countries have the necessary resources and skills to produce certain goods and services. Nevertheless, countries impose trade barriers such as tariffs and import quotas to protect domestic industries.

In general, most studies find income and relative import prices to be the most important determinants of import demand, although the nature of the impact of these factors varies across countries

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in a two-nation model, international equilibrium is determined by the _____ of one country and the _____ of the other country.

Answer :

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in a two-nation model, international equilibrium is determined by the _ of one country and the _ of the other country.