A country will not trade unless

Question

Quizplus · Accepted Answer

A country will only trade if it can obtain goods or services at a lower opportunity cost than producing them domestically, or if it can sell goods or services at a higher price than it could domestically. In other words, the terms of trade must be superior to domestic opportunities. It is not necessary for the country to have an absolute advantage, and the balance of trade can be in a deficit or surplus position depending on various factors.

A Country Will Not Trade Unless