Comparative advantage can result from different climates, natural resource endowments, and capital stocks in various countries.

Question

Quizplus · Accepted Answer

Comparative advantage is a concept that arises from differences in the relative costs of production between countries. These costs can be influenced by a variety of factors including natural resources, climate, and capital stocks. Therefore, statement is true.

Comparative Advantage Can Result from Different Climates, Natural Resource Endowments