When,in our analysis of the gains and losses of 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 of international trade, we are essentially assuming that the country cannot affect world prices by trading with other countries. This means that the country has little to no influence on the prices of goods and services in other countries, and therefore, cannot significantly impact its gains or losses through trade. However, this assumption does not necessarily mean that the country cannot experience gains or losses through trade or have a comparative advantage over other countries.

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