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I think the amount of import in figure 1 is wrong. It should go from Qc` to Qc or not?
you're right, when trade opens we produce Q'c but consume Qc, the difference would have to come from somewhere and that's from imports. Small mistake but this series has been amazing.
Thank you a lot, this one really helped me to understand offshoring. Hope I'll answer correctly on exam
I think the amount of import in figure 1 is wrong. It should go from Qc` to Qc or not?
you're right, when trade opens we produce Q'c but consume Qc, the difference would have to come from somewhere and that's from imports. Small mistake but this series has been amazing.
Thank you a lot, this one really helped me to understand offshoring. Hope I'll answer correctly on exam