Monopolistic Competition and International Trade
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Excellent lesson! This really rounded out the case for free trade beyond the usual gains from trade explanation that one learns within the first week of an economics education.
However, I am not sure that this will suffice in my DEFENSE of free trade to certain debate opponents /such as those that might claim that outsourcing cancels out the productivity gains as a driver of higher domestic wages/. Are there papers that demonstrate that the economies of scale produced by free trade are more robust regarding aggregate demand shocks?