A nation's producers can compete effectively with imports from other nations if:

Question

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A nation's producers can compete effectively if their labor cost per unit of output is low, because it allows them to lower the price of their goods and be more competitive in the market. Having an abundance of unskilled workers (A) or an absolute advantage in the production of all goods (E) may not necessarily lead to effective competition. The relative price of exports to imports being high (B) may make a country's exports more expensive and less competitive. The high opportunity cost of production (D) means that a country is sacrificing the production of other goods to focus on a particular good, which may not necessarily lead to effective competition in the market.

A Nation's Producers Can Compete Effectively with Imports from Other