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International Trade Theory - PowerPoint PPT Presentation


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Introduction. International trade theoryexplains why it is beneficial for countries to engage in international tradehelps countries formulate their economic policyexplains the pattern of international trade in the world economy . An Overview of Trade Theory. Question: What is free trade?Free trade refers to a situation where a government does not attempt to influence through quotas or duties what its citizens can buy from another country or what they can produce and sell to another country.

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