Which of the following countries most likely has a comparative advantage?
A) A South American country that produces more coffee compared to an Asian country despite having equal resources
B) An Asian country that manufactures more textile products than most countries by decreasing its production of tea
C) An Asian country that produces quality automobiles with little opportunity cost compared to other countries
D) A North American country that expands its trade relations to a neighboring country to share resources

Question

Quizplus · Accepted Answer

A country has a comparative advantage when it can produce a good at a lower opportunity cost than others. Producing quality automobiles with little opportunity cost suggests a comparative advantage.

Which of the Following Countries Most Likely Has a Comparative