If the World Terms of Trade for a Country Are

question 38

Multiple Choice

If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of 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.

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