Problem
1. Why is it that the gains from trade could not be determined precisely under the Ricardian trade model?
2. What is meant by the theory of reciprocal demand? How does it provide a meaningful explanation of the international terms of trade?
3. How does the commodity terms-of-trade concept attempt to measure the direction of trade gains?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.