If the world price of textiles is higher than Vietnam's domestic price of textiles without trade,then Vietnam
A) should import textiles.
B) has a comparative advantage in textiles.
C) should produce just enough textiles to meet its domestic demand.
D) should refrain altogether from producing textiles.

Question

Quizplus · Accepted Answer

If the world price is higher than Vietnam's domestic price, it indicates that Vietnam can produce textiles at a lower cost than the rest of the world, suggesting a comparative advantage in textiles.

If the World Price of Textiles Is Higher Than Vietnam's