Poor countries are at a distinct disadvantage when it comes to economic production; they get outcompeted in everything since they do not have a comparative advantage in anything.

Question

Quizplus · Accepted Answer

This statement is false. Poor countries may have a comparative advantage in certain industries, such as agriculture or low-skill manufacturing, due to factors such as lower labor costs, proximity to natural resources, or favorable climate conditions. Additionally, poor countries may have the opportunity to develop new industries that can become a source of comparative advantage in the future. Therefore, it is incorrect to say that they cannot compete in anything.

Poor Countries Are at a Distinct Disadvantage When It Comes