Problem
1. Discuss several economic events that would increase a country's willingness to trade.
2. Assume that demand increases for a country's export good. Will there be a different qualitative effect on the country's terms of trade if the country is "large" rather than "small"? Why or why not?
3. Suppose that country I increases its willingness to trade at the same time that trading partner country II decreases its willingness to trade. What can be said about the resulting impact on the terms of trade and on the volume of trade?