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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?
- "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? Explain your answer.
- a. What is Terms of Trade?How is it computed?Explain with an example.
- b. What is Comparative Advantage?Explain with an example of a two-country and two-commodity model.
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Technical Change, Relative Prices, And Environmental Resource Evaluation
Authors: V Kerry Smith
1st Edition
1317358570, 9781317358572
