what-role-does-negotiation-power-play-in-determining-the-terms-of-trade

Question

What role does negotiation power play in determining the terms of trade?

Accepted Answer

It can shift the price of trade in favor of the stronger negotiator.

Answer

It sets the price of trade equal to the average opportunity cost.

Answer

It ensures the price of trade is equitable for both parties.

Answer

It has no impact on the terms of trade.