Imports and Exports in the market diagram

We add foreign supply and demand to a typical market (Supply and Demand) diagram to illustrate imports and exports, and the corresponding effects on consumers, producers, and total market surplus. The video starts by 0:00 Case 1: if the good's domestic price (before trade) is greater than the World price, the Home country will IMPORT it ("good 2") 3:15 Continuing with Case 1, we show the corresponding representation in the consumption possibilities curve (CPC) diagram. [If you don't remember what that is, you can just skip this part or watch    • Consumption possibilities curve (CPC) and ...  ] 05:10 Case 2: if the World price is greater than the equilibrium price in autarky, the country will EXPORT that good (here, "good 1") Both scenarios assume that the Home country is much smaller than the rest of the world, so that the World price is not affected by how much Home exports or imports. Next, see what happens when a tariff or quota is introduced:    • Trade barriers: import tariffs and quotas   __________________ Thank you to ETS Multimedia Services at UC San Diego and the developers of open-source programs OpenShot Video Editor (openshot.org) and Audacity (audacityteam.org).