If the World Terms of Trade Equal Those of Country

question 61

Multiple Choice

If the world terms of trade equal those of country F,then

• A) country H but not country F will gain from trade.
• B) country H and country F will both gain from trade.
• C) neither country H nor F will gain from trade.
• D) only the country whose government subsidizes its exports will gain.
• E) country F but not country H will gain from trade.