In the Mercantilist View of International Trade (In a Two-Country

question 14

Multiple Choice

In the Mercantilist view of international trade (in a two-country world) ,

• A) both countries could gain from trade at the same time, but the distribution of the gains Depended upon the terms of trade.
• B) both countries could gain from trade at the same time, and the terms of trade were of No consequence for the distribution of the gains.
• C) neither country could ever gain from trade.
• D) one country's gain from trade was associated with a loss for the other country.

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