Poor nations typically have a competitive advantage in agricultural goods because of
A)Entrepreneurial incentives.
B)Plenty of land.
C)High productivity.
D)Low labor costs.

Question

Quizplus · Accepted Answer

Poor nations typically have lower labor costs, which gives them a competitive advantage in agricultural goods because labor is a significant cost in the production of agricultural commodities. This advantage is often offset by a lack of productivity or technology, but low labor costs can still give poor nations an advantage over higher-cost producers in developed nations.

Poor Nations Typically Have a Competitive Advantage in Agricultural Goods