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If the optimal forecast of the return on a security exceeds the equilibrium return,then
Free International Trade
Trade between countries without restrictions such as tariffs, quotas, or other barriers.
Protectionist Policies
Economic policies designed to restrict international trade to protect domestic industries from foreign competition.
Domestic Surplus
The extra quantity of a good that producers are willing to supply over what is demanded by domestic consumers, often measured when analyzing the impact of international trade.
Tariffs
Taxes on imported goods, implemented by a government to protect domestic industries from foreign competition or to generate revenue.
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