Small countries thrive with international trade, regardless of price fluctuations.
The article discusses how small countries benefit from international trade, even with uncertainties. It shows that opening up to trade can increase a country's consumption options and overall welfare. By trading goods and securities with other countries, a small country can gain regardless of how much foreign prices fluctuate. Additionally, trading equities can bring even more welfare gains. The study reveals that changes in commodity trade terms may not always lead to welfare gains or losses when equity trade terms are also considered.