When two countries trade, each one can specialize and make the combined output higher which
expands consumption possibilities of both the countries.” Do you agree? a. What is Terms of Trade? How is it computed? provide with an example.b. What is Comparative Advantage? elaborate with an example of a two-country and two-commodity model
The gains from specialization and trade rely upon the example of near, not supreme,advantage. I concur just as differ as it is reliant on the example of near favorable positionbetween the two…
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