A number of latin american nations export coffee and import, Business Economics

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A number of latin american nations export coffee and import

A number of Latin American nations export coffee and import other goods. A long-term drought now reduces coffee production in the countries of this region. Assume that they remain exporters of coffee. Explain why the long-term drought in the region might lead to an increase in the region's welfare. What assumptions are required for this gain in well-being to occur?

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Business Economics: A number of latin american nations export coffee and import

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