Suppose Haiti does not have a comparative advantage in the production of shirts in 2007. The concept of explains how Haiti could achieve a comparative advantage by 2010.
A) dynamic comparative advantage
B) absolute advantage
C) gains from trade
D) opportunity costs

Question

Quizplus · Accepted Answer

Dynamic comparative advantage suggests that countries can develop a comparative advantage over time by investing in their resources and technology. Therefore, Haiti could potentially achieve a comparative advantage in shirt production by investing in its manufacturing infrastructure and improving its technology to make the production process more efficient.

Suppose Haiti Does Not Have a Comparative Advantage in the Production