In a three-country two-commodity model, countries being of unequal sizes, the domestie exchange ratio are as under: Country Domestic Exchange Ratio1 2a : 1b2 1a : 1b3 1a : 2b As per this model, the stability in international trade is most likely at the international terms of trade of

International economics is concerned with the effects upon economic activity from international differences in productive resources and consumer preferences and the international institutions that affect them. Basicaly, International economics deals with issues arising from economic interaction among sovereign nations