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China Has a Comparative Advantage in Textiles and an Absolute

Question 32

Multiple Choice

China has a comparative advantage in textiles and an absolute advantage in both textiles and radios. Japan has a comparative advantage in radios. According to this scenario


A) Japan should import both radios and textiles.
B) China should export both radios and textiles.
C) China should export textiles and import radios.
D) Japan should export textiles and import radios.

Correct Answer:

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