Multiple Choice
Suppose India exports cars to France and imports wine from Argentina. This situation suggests
A) India has a comparative advantage relative to Argentina in producing wine, and France has a comparative advantage to India producing cars.
B) India has a comparative advantage relative to France in producing cars, and Argentina has a comparative advantage relative to India in producing wine.
C) India has an absolute advantage relative to France in producing cars, and Argentina has an absolute advantage relative to India in producing wine.
D) India has an absolute advantage relative to Argentina in producing wine, and France has an absolute advantage relative to India in producing cars.
Correct Answer:
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