Session 2.

Homework.

Krugman: Ch.10 (page 245 - 249 )

Ex 1. What is the difference between a free-trade area and a customs union? (Krugman Ch. 10)

Ex 6. Which conditions are likely to lead to a trade-diverting customs union? To a trade-creating custom union? (Krugman Ch. 10)


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