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In the Following Offer Curve Diagram

question 25

Multiple Choice

In the following offer curve diagram,
In the following offer curve diagram,   At TOT<sub>1</sub>, there is excess demand for __________, and the movement to equilibrium will result in better terms of trade for __________. A)  wine; France B)  wine; Korea C)  clothing; France D)  clothing; Korea
At TOT1, there is excess demand for __________, and the movement to equilibrium will result in better terms of trade for __________.


Definitions:

Direct Investment

The ownership of overseas facilities.

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