The principle of absolute advantage states that a country should import a commodity that can be produced at a lower cost than can other nations.
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Q1: Trade is a zero sum game.
Q3: If one nation has absolute advantage for
Q4: As long as the domestic exchange ratio
Q5: If the domestic exchange ratio of the
Q6: According to the principle of relative advantage,
Q7: Relative production costs can determine whether trade
Q8: The principle of relative advantage suggests that
Q9: Because of trade, the two different domestic
Q10: International trade is a function of the
Q11: A country that has absolute advantage in
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