International trade influences market equilibrium from "summary" of Business Cycles and Equilibrium by Fischer Black
International trade plays a significant role in shaping market equilibrium. When countries engage in trade with one another, it affects the supply and demand dynamics within each market. This influence stems from the fact that trade allows for a greater variety of goods and services to be available to consumers, leading to changes in consumer preferences and overall market conditions. One way in which international trade influences market equilibrium is through changes in price levels. When a country imports goods from another country, it can lead to a decrease in the price of those goods in the domestic market. This, in turn, can affect the equilibrium price and quantity of similar goods produced domestically. Conversely, when a country exports goods to another country, it can lead to an increase in the price of those goods in the domestic market, impac...
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