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Explain How Trade Will Tend to Emerge Along the Lines

question 4

Essay

Explain how trade will tend to emerge along the lines of comparative advantage if markets are allowed to work freely.


Definitions:

Market Rate

The current price or interest rate at which goods, services, or securities are bought and sold in a competitive marketplace.

Bond Selling Price

The market price at which a bond is traded, which may be above (premium) or below (discount) its face value.

Par Value

The nominal or face value of a security or currency, as stated by the issuer.

Market Rate

The current price or rate at which goods, services, or securities are traded in the open market.

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