For any country,if the world price of zinc is higher than the domestic price of zinc without trade,that country should
A) export zinc, since that country has a comparative advantage in zinc.
B) import zinc, since that country has a comparative advantage in zinc.
C) neither export nor import zinc, since that country cannot gain from trade.
D) neither export nor import zinc, since that country already produces zinc at a low cost compared to other countries.

Question

Quizplus · Accepted Answer

If the world price is higher than the domestic price, the country can sell zinc at a higher price internationally, indicating a comparative advantage and an incentive to export.

For Any Country,if the World Price of Zinc Is Higher