1. In the Mercantilist view of international trade (in a two-country world).

a. both countries could gain from trade at the same time, but the distribution of the gains depended upon the terms of trade.

b. both countries could gain from trade at the same time, and the terms of trade were of no consequence for the distribution of the gains.

c. neither country could ever gain from trade.

d. one country's gain from trade was associated with a loss for the other country.

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