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When Disparities in Prices Between Different Country Markets Exceed the Transportation

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Essay

When disparities in prices between different country markets exceed the transportation and duty costs separating the markets,enterprising individuals can purchase goods in the lower-price country market and then transport them for sale in markets where higher prices prevail.Give examples in support of this statement.


Definitions:

Industry Output

The total amount of goods or services produced by a particular industry over a specific time period.

Decline

A decrease in the quantity, quality, or level of something, often indicating a negative trend.

Upward Sloping

A term describing a line on a graph that moves higher as you move from left to right, used in various economic contexts.

Long-Run Supply Curve

A graphical representation showing the relationship between market prices and the amount of output produced over time, considering all inputs as variable.

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