When,in our analysis of the gains and losses from international trade,we assume that a country is small,we are in effect assuming that the country
A)cannot experience significant gains or losses by trading with other countries.
B)cannot have a significant comparative advantage over other countries.
C)cannot affect world prices by trading with other countries.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When we assume that a country is small in our analysis of gains and losses from international trade, we are assuming that the country is unable to affect world prices by trading with other countries. This is because, as a small player in the global market, its actions will not have a significant impact on the overall market. However, this does not mean that the country cannot experience gains or losses from international trade, nor does it necessarily mean that it lacks comparative advantage.

When,in Our Analysis of the Gains and Losses from International