Question

The gain from trade is maximum if the international terms of trade are

_____________.

a. Nearer to internal terms of trade of trading partner

b. Equal to exporting country

c. Nearer to domestic terms of trade of importing country

d. None of the above​

Answer 1

Answer:

(a.) nearer to internal terms of trade of trading partner.

Explanation:

The gain from trade is maximum if the international terms of trade are

As the ratio cost & the terms of trade are nearer to each other it will more  be the gains from the trade of the involved countries.

Hence, explained.

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