explain the importance of the terms of trade to a nation and how changes in the terms of trade are likely to impact social welfare.

Q: Use comparative advantage, two countries and two goods, to explain why every country can be better…

A: In international theory of economics, comparative advantage occurs when a country can produce one…

Q: When a country opens to trade, people working in industries producing goods that the country exports…

A: Answering the follow up question. Free trade refers to the exchange of goods and services between…

Q: Many people will lose or have lost their jobs because of the growth of international trade. So, why,…

A: The answer is as follows:-

Q: How would free trade occur with a small agricultural country and a large industrial country?

A: Answer: Free trade can occur between an agricultural country and an industrial country, trade is not…

Q: Discuss Fair Trade VS. Free Trade

A: Free trade refers to the unrestrained follow of labor, services, and goods across the country's…

Q: If countries engaged in trade enjoy welfare gains, why is there often some opposition to free trade?

A: Free trade refers to the policy of the government which does not have imposed any restrictions on…

Q: Explain how differences in technology can cause trade between countries.

A: Differences in technology allows for different type of trades to take place. For example if a…

Q: Why is trade a much more complex thing than official measures?

A: Trade is the exchange of goods and services between trading parties in order to make money . And if…

Q: The economic basis for trade is.

A: The economic basis for trade is the principle of comparative advantage. This principle states that…

Q: Explain what may cause a deterioration of the terms of trade. 

A: The proportion of a nation's export prices to its import costs is known as terms of trade (TOT). To…