题目内容
A nation realizes maximun gains from trade at the point where the international terms-of-trade line is tangent to its community indifference curve.
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The Ricardian theory of comparative advantage could fully explain the distribution of the gains from trade among trading partners.
BecausetheRicardiantheoryofcomparativeadvantagewasbasedonlyonanation'sdemandconditions,itcouldnotfullyexplainthedistributionofthegainsfromtradeamongtradingpartners.
Because the Ricardian theory of comparative advantage was based only on a nation's supply conditions, it could only determine the outer limits within which the equilibrium terms of trade would lie.
The domestic cost ratios of nations set the outer limits to the equilibrium terms of trade.
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