Eco201 Mod 4 Case

Running Head : Free mete out`Free changeInstitutionDateFree trade wiliness affects exertion possibility frontier (PPF ) positively due to existence of comparative advantage between two or more than countries . Trade makes a country to maximize the output signal of the product in which it is capable of producing leaving room for foreign trade to add the other products . PPF is the maximum business of two or more commodities at the existing technology 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 are the availability of and technology for the production of the commodities Availability of resources in a country leads to a blue production of 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 high 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 mood for investment and through free trade share countries are able to entryway the markets from the other countries . The freedom to access market across different countries within the free trade region makes citizens of these countries to be in a position to invest in other countries which have good business climate and these...If you want to get a full essay, order it on our website: Orderessay

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