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The gains from trade, new trade theory, tariff analysis
1. For answering this question, you are supposed to study lecture notes as well as the paper entitled “An Empirical Assessment of the Comparative Advantage Gains from Trade: Evidence from Japan” by Bernhofen and Brown. The authors’ goal is to measure a nation’s welfare gains from free trade compared to autarky.
You do not have to read this paper in its entirety. You are required to study only the parts related to the following questions.