Micoreconimics

International Trade has become a hot topic lately and after reviewing the chapters and powerpoint presentations,

1. Explain and illustrate the conditions under which two countries can mutually benefit from trading with each other.  
2. Explain and illustrate how the terms of trade determine the extent to which each country specializes
3. Then finally explain and illustrate the mutual benefits of trade.

(Use vocabulary from your readings. Examples include: comparative advantage, absolute advantage, opportunity costs, production and consumption) 

Your initial post must answer all three questions and posts must contain a minimum of 200 words. You must include citations to support your responses.