Figure 9-20
The figure illustrates the market for rice in Vietnam.
-Refer to Figure 9-20.From the figure it is apparent that

Question

Figure 9-20
The figure illustrates the market for rice in Vietnam. 
-Refer to Figure 9-20.From the figure it is apparent that

Quizplus · Accepted Answer

The figure shows that the domestic supply of rice in Vietnam is less than the domestic demand. Therefore, if trade is not allowed, Vietnam will experience a shortage of rice. This suggests that Vietnam has a comparative advantage in producing rice, as it is able to produce rice at a lower cost than the rest of the world, but is not producing enough to meet its own demand. If Vietnam were to trade with other countries, it could export rice and import other goods that it needs, thus benefiting from the trade.

Figure 9-20 The Figure Illustrates the Market for Rice in Vietnam