When a country removes trade barriers and exports milk and imports automobiles, what will most likely happen?

Question

Quizplus · Accepted Answer

When a country removes trade barriers and exports milk and imports automobiles, it will essentially be transforming milk into automobiles. This means that the country may have a comparative advantage in milk production, and by exporting milk, it can earn more income which can be used to import automobiles, in which it may have a comparative disadvantage. This can lead to a shift in the country's production structure towards the production of goods or services in which it has a comparative advantage.

When a Country Removes Trade Barriers and Exports Milk and Imports