Asked by
Kayla Melgarejo
on Dec 12, 2024
Verified
A nation can gain from international trade when
A) its relative production costs are the same as those of other countries.
B) it exports goods for which it is a low-opportunity cost producer while importing goods that it could produce only at a high opportunity cost.
C) it imports goods for which it is a low-opportunity cost producer and exports goods for which it is a high opportunity cost producer.
D) it has a trade deficit.
Low-Opportunity Cost Producer
An individual or company that can produce goods or services at a lower opportunity cost than competitors.
High Opportunity Cost
The significant loss of potential gain from other alternatives when one option is chosen.
- Master the theory of comparative advantage and its role in the dynamics of international trade.
- Grasp the significance of specialization and trade for the world's economic structures.
Verified Answer
KG
Learning Objectives
- Master the theory of comparative advantage and its role in the dynamics of international trade.
- Grasp the significance of specialization and trade for the world's economic structures.