International trade can have big effects on domestic markets. For both an import good and an export good (in other words, address each bulleted item below twice-once for import and once for export), describe how opening up to international trade affects the following:
- supply or demand for the particular good,
- the competitiveness of that good’s market, and
- how the change in competitiveness affects equilibrium price and quantity.
Stepping away from the import/export examples, describe how opening up to trade specifically affects a domestic monopoly. Include an explanation, using game theory, of how even a single additional competitor can lead to a market outcome similar to perfect competition.
Your journal must be at least three pages in length (not counting the title and references pages) and include at least three peer-reviewed resources. Adhere to APA Style when writing your journal, including citations and references for sources used. Be sure to include an introduction. Please note that no abstract is needed.