STANDARD TRADE MODEL 9-12 Free trade prevails between India and the ROW. Suppose India 9. 10. 11. 12. experiences economic growth, while the ROW has no growth. India has comparative advantage in cloth and the ROW in food. In world markets, the relative supply of cloth to food: a) nses b) falls c) stays the same d) rises, if India's economic growth is biased toward food e) falls, if India's economic growth is biased toward food In world markets, the relative price of cloth to food: a) nses b) falls c) stays the same d) rises, if India's economic growth is biased toward food e) falls, if India's economic growth is biased toward food The secondary effect of the growth on India is a terms of trade: a) improvement b) deterioration c) unchanged d) improvement, if India's economic growth is biased toward food e) deterioration, if India's economic growth is biased toward food The secondary effect of India's growth on the ROW is 3 terms of trade: a) improvement b) deterioration c) unchanged d) improvement, if India's economic growth is biased toward food e) deterioration, if India's economic growth is biased toward food