Eco201 Mod 4 Case

Running Head : sluttish mete out`Free changeInstitutionDateFree trade wiliness affects exertion possibility verge (PPF ) po simulateively due to existence of comparative advantage between two or more than countries . Trade makes a country to increase the output signal of the product in which it is capable of producing difference room for foreign trade to add the other products . PPF is the upper limit business of two or more commodities at the living applied science and hence trade enables a country to maximize the production of one commodity which leads to a rightward shift in the PPF thread (Friedman , M . 1997Other factors which expand the production possibility frontier argon the availability of and technology for the production of the commodities Availability of resources in a country leads to a blue production o f the commodities which in turn expands the PPF by shifting the curve to the right .

An updated technology in a country as well leads to full(prenominal) production of the goods and services which shifts the PPF curve to the rightFree trade creates disclose opportunities for sit downment together with entrepreneurship in the countries which engage in the trade (Friedman M . 1997 . Some countries provide good political and economic style for investment and through free trade share countries are able to entryway the grocery stores from the other countries . The freedom to access market across different countri es within the free trade function makes cit! izens of these countries to be in a position to invest in other countries which have good business climate and these...If you emergency to get a full essay, order it on our website: BestEssayCheap.com

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