World price and Comparative advantage o If the country decides to engage in international trade, will it be an importer or exporter of steel? The effects of free trade can be shown by comparing the domestic price of a good without trade and the world price of the good. The world price refers to the prevailing price in the world markets a country will either be an exporter or an importer of the goodWorld Price and Comparative Advantage • If the country decides to engage in international trade, will it be an importer or exporter of steel? • The effects of free trade can be shown by comparing the domestic price of a good without trade and the world price of the good. The world price refers to the prevailing price in the world markets. • A country will either be an exporter or an importer of the good