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The attached graph depicts the import market for Mexico who has decided to join a FTA

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solution


Question

Question;The attached graph depicts the import market for Mexico who has decided to join a FTA with the United States. Assume Mexico is a small nation in international trade.What is the volume of trade creation? (j stands for Japan)a. 20 unitb. 30 unitc. 40 unitd. 50 unite. 60 unitBased on the graph, what is the volume of trade that is diverted?a. 10 unitsb. 20 unitsc. 30 unitsd. 40 unitse. 602 unitsBased on the graph, how is Mexico's economic well-being impacted by joining the FTA with the United States?a. +$200b. -$120c. -$80d. +$60e. +$40

 

Paper#56527 | Written in 18-Jul-2015

Price : $22
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