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Foreign trade multiplier is the amount by which the income of a country will be raised by an increase in domestic investments on exports. Essentially, the more money that is invested in exports, the more money that everyone involved in the export will receive. This can lead to an shift in the world's wealth to countries that export more than they import, up to an equilibrium point that is shown by a supply/demand curve.

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Q: What is foreign trade multiplier and discuss its international repercussions?
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