If the world price is less than the domestic price of a commodity in a closed economy,then when that country begins to trade,the country will ____________ the commodity.

Question

Quizplus · Accepted Answer

If the world price is less than the domestic price of a commodity in a closed economy, it means that domestic producers are able to charge a higher price for their product than foreign producers. When the country begins to trade, it will likely import the commodity from foreign producers who can offer a lower price, leading the country to become a net importer of the commodity.

If the World Price Is Less Than the Domestic Price