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From an intitial trading equilibrium position in the offer curve diagram suppose that a country's consumers...

From an intitial trading equilibrium position in the offer curve diagram suppose that a country's consumers change its tastes so they have relatively stronger preference for the good the country export what will happen to their willingness to trade and the terms of trade of the country

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Answer #1

Trade is done by the countries voluntarily which is dominated by supply and demand forces. However, other factors such as comparative advantage also influence terms of trade.
In this question, it is mentioned that the home country's consumers have changed their taste and now they have a stronger preference for the good which they export. This will push the offer curve of the home country to inward and they will be less willing to trade it. If the size of the country's economy is quite large then it could experience favorable terms of trade and extract a higher margin. On the other hand, if the country's economy is quite small then it won't be able to gain much from this situation.

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