4344EconomicsMedium
Given free trade, small nations tend to benefit the most from trade since they?
AHave demand preferences and income levels lower than their large trading partners
BRealize terms of trade lying near the MRTs of their large trading partners
CAre less productive than their large trading partners
DAre more productive than their large trading partners
Correct answer
B. Realize terms of trade lying near the MRTs of their large trading partners
Explanation
The correct answer is Realize terms of trade lying near the MRTs of their large trading partners.