What is the terms-of-trade effect of growth? What is the wealth effect of growth? How can we measure the change in the welfare of the nation as a result of growth and trade when the nation is too small to affect relative commodity prices? When the nation is large enough to affect relative commodity prices?

From the trade model, we found that in most cases, trade creates value. Where do we see that conclusion in the Supply and Demand model? You should be able to answer this in a few sentences.

true/false explain If an advanced country has an absolute advantage in the production of everything (relative to certain less developed countries), the advanced country will benefit if it eliminates trade with less developed countries and becomes self-sufficient.

Would free trade occur with a small agricultural country and a large industrial country?

Which of the following is TRUE regarding trade and wages?     Countries with low productivity levels will always have lower wages than high-productivity nations whether they trade or not.   Trade can increase wages by increasing the productivity of labor.   Trade directly increases productivity, which in turn increases wages.   Trade helps to equalize wages between high- and low-productivity countries.

Some groups of nations are forming trade blocs, like North America or Europe. Are regional trade blocs good for global trade or not?

Happyland can produce 40 tones of marshmallows or 20 tones of chocolate in a year. Friendshipland can produce 80 tones of marshmallows or 40 tones of chocolate in a year. Can these countries benefit from trade with each other based on specialization and comparative advantage? Yes No

Questions I and J.

Has economic globalization helped people to bridge cultural gaps? Why or why not?

Please briefly explain the effects of economic growth on international trade in terms of biased growth.