Suppose That a Country That Has Been Isolated from the Rest

question 159

Essay

Suppose that a country that has been isolated from the rest of the world decides to open its borders to international trade. The country produces chickens and soccer balls. On what basis can the country decide which good to import and which good to export?

---

Definitions:

General Merchandise

A category of products that includes a wide variety of items, typically found in a department store or retail outlet, not limited to any specific category.

Channel Functions

Activities involved in moving goods from producers to consumers, including distribution, transportation, and retailing.

Rack Jobbers

Merchandisers who lease space within retail stores to display and sell their own products, typically involved in the distribution of books, music, or electronics.

Consignment

A sales arrangement where goods are left with a third party to sell, but ownership remains with the supplier until sold.