Why is it unlikely for most countries to reach a state of complete specialization? Answer with reference to what was discussed in Chapter 2. Define the ‘terms of trade’ and illustrate why it is a...

Why is it unlikely for most countries to reach a state of complete specialization? Answer with reference to what was discussed in Chapter 2. Define the ‘terms of trade’ and illustrate why it is a useful concept to use when studying international trade. An article in the New Yorker states, “the main burden of trade-related job losses and wage declines has fallen on middle- and lower-income Americans. But … the very people who suffer most from free trade are often, paradoxically, among its biggest beneficiaries.” Explain how it is possible that middle- and lower-income Americans are both the biggest losers and at the same time the biggest winners from free trade.