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Business, 10.03.2020 19:11 zhenhe3423
Assume that initially country A exchanges three barrels of oil for one ton of steel from country B. Later the arrangement changes to four barrels of oil for one ton of steel. This indicates that:
a) the relative price of steel in terms of oil has fallen.
b) country A has a comparative advantage in the production of steel.
c) country B has an absolute advantage in the production of oil.
d) the terms of trade for country A have improved.
e) the terms of trade for country B have improved.
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Assume that initially country A exchanges three barrels of oil for one ton of steel from country B....
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