Why do small countries typically gain the most from free trade?

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Because they have higher productivity compared to their larger trade partnersBecause their productivity is lower than that of bigger trading nationsBecause their income levels and consumer preferences are less than those of larger partnersBecause the terms of trade they achieve are close to the production possibility frontiers of their larger trading counterparts

Explanation

Small nations benefit greatly from free trade as the terms of trade they experience tend to be near the production possibility frontiers (MRTs) of their larger trading partners, allowing them to trade efficiently and gain from specialization.