Asked by
Jasmine Rodriguez
on Dec 17, 2024
Verified
If a country's domestic price of a good is lower than the world price, then that country has a comparative advantage in producing that good.
Comparative Advantage
The ability of an individual or country to produce a particular good or service at a lower opportunity cost than its trade partners, leading to more efficient trade outcomes.
Domestic Price
The price of goods or services within a country, influenced by local demand and supply conditions.
World Price
The global market price of a good or service, determined by supply and demand in the international marketplace.
- Comprehend the concepts of absolute and comparative advantage in commercial transactions.
- Discern the conditions that dictate a country's participation in the import or export of goods.
Verified Answer
KW
Learning Objectives
- Comprehend the concepts of absolute and comparative advantage in commercial transactions.
- Discern the conditions that dictate a country's participation in the import or export of goods.