International trade can have bug effect on domestic markets.
Details: International trade can have bug effect on domestic markets. For both an import and export good (in other words, address each bulleted item below twice- once for import and once for export), describe how opening up to international trade affects the following:
-supply and demand for the particular good
–the competitiveness of that goods market, and
-how the change in competitiveness affects equilibrium price and quantity.
Stepping away from the import/export examples, describe how opening up to trade specifically affects a domestic monopoly. Include an explanation, using game theory, of how even a single additional competitor can lead to a market outcome similar to perfect competition.
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