International Trade has become a hot topic lately and after reviewing the chapters and powerpoint presentations,
- Explain and illustrate the conditions under which two countries can mutually benefit from trading with each other.
- Explain and illustrate how the terms of trade determine the extent to which each country specializes
- Then finally explain and illustrate the mutual benefits of trade.
(Use vocabulary from your readings. Examples include: comparative advantage, absolute advantage, opportunity costs, production and consumption)