In considering the distribution of the gains from trade:
A) Smaller countries usually get a larger proportion of the gains from trade.
B) Larger countries usually get a larger proportion of the gains from trade.
C) The gains are generally split equally between small and large countries.
D) No statement can be made about the general nature of the split.

Question

Quizplus · Accepted Answer

Smaller countries often gain more from trade relative to their size because they have less influence on world prices and can benefit more from specialization and access to larger markets.

In Considering the Distribution of the Gains from Trade