Answer to Question #264245 in Economics for international econ

Question

briefly classify the growth pattern of a country by using the relative size of foreign trade sector as a yardstick

Answer 1

Patterns of trade refer to types/category of goods imported and exported. A good or service brought into one country from another is called import trade. An export is a function of international trade whereby goods produced in one country are shipped to another country for future sale or trade.

The gains from international trade depends upon the cost ratios of differences in comparative cost ratios in the two trading countries. So the smaller the size of the country, the larger the gain from trade.