2 Small nations like Ecuador or Panama, whose imports are a very small share of the world market, tend to benefit the most from trade since they:O have demand preferences and income levels lower than their large trading partnersO are more productive and less costly than their large trading partnersO are less productive and more costly than their large trading partnersO realize terms of trade lying near the marginal rates of transformation of their large trading partners

For the small nations it is very costly to produce goods and services that require sophisticated…

Small nations like Ecuador or Panama, whose imports are a very small share of the world market, to benefit the most from trade since they: O have demand preferences and income levels lower than their large trading partners are more productive and less costly than their large trading partners O are less productive and more costly than their large trading partners O realize terms of trade lying near the marginal rates of transformation of their large trading partners