The expression "importance of being unimportant" suggests that if one nation is much larger than the other, the larger nation realizes most of the gains from trade while the smaller nation realizes fewer gains from trade.

Question

Quizplus · Accepted Answer

The expression "importance of being unimportant" actually suggests that smaller nations have more to gain from trade, as they can specialize in producing the goods and services in which they have a comparative advantage and trade with larger nations that may not have a comparative advantage in those areas. Therefore, the statement in the question is incorrect.

The Expression "Importance of Being Unimportant" Suggests That If One