The law of comparative advantages explains why
A)advanced nations will not trade with less-developed countries.
B)an advanced nation will not trade with other countries.
C)less-developed countries only trade among themselves.
D)nations trade with each other, regardless of their relative levels of economic development.
E)nations erect trade barriers.

Question

Quizplus · Accepted Answer

The law of comparative advantages states that nations will trade with each other based on their relative levels of efficiency and productivity in producing different goods and services. This means that even if one nation is less developed than another, they may still trade with each other if they have a comparative advantage in producing certain goods. Therefore, option D is the best choice as it reflects the fundamental principle of the law of comparative advantages.

The Law of Comparative Advantages Explains Why