nternational trade can have big effects on domestic markets. For both an import good and an 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 or demand for the particular good, the competitiveness of that good’s market, and how the change in competitiveness affects equilibrium price and quantity.

International business is a affects the domestic economy in many ways.

Explanation:

The impacts of international trade can vary from the supply and demand of a  particular good or product and their impact on the domestic market functioning. The price changes in the market affect the wages received by the workers as trade opens new foreign markets.  The supply of the products is depended on the demands of the consumers which may be affected by the government policies, and many socio-cultural aspects. International trade leads to the increase of the value of the products and thus increases in the demands and the competitiveness of the market, for this, the government provides a subsidy to the domestic infant industries to protect them from getting removed for the competition. Due to the competition, the firms try to sell their product at a lower or higher cost thereby increasing the quantity demanded by the customer. Thus the equilibrium of the price and quantity demanded changes.