What happens to its trading partners terms of trade

Reference no: EM133504408

Answer the following questions. Each part of the question is not related to each other.

Question 1: Consider a two-country, two-good world and there is no trade restriction. When a country experiences a technological improvement that is strongly biased toward its export (say, good X), what happens to its trading partner's terms of trade? Explain in words only.

Question 2: "When a large open economy lowers its tariff on its imported goods, the tariff revenues collected

Reference no: EM133504408

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