In: Economics
2. Normally, one's production point is his/her consumption point under autarky. However, is this true if two individuals/firms/countries are allowed to trade?
Answer: No; this is not true if trade is allowed.
In autarky:
There is only domestic business but no international trade. Therefore, whatever produced is consumed within the economy (country). This makes (supply = Demand) domestically.
In trade:
There is both – domestic business and international trade.
Production may not be equal to consumption always, since world price becomes a key factor.