A rich nation will trade with a poor nation because the

Question

Quizplus · Accepted Answer

A poor nation may have a comparative advantage in producing a certain product, meaning it can produce it at a lower opportunity cost compared to the rich nation. This creates mutual benefits for both nations to trade, as the poor nation can focus on producing and exporting the product it has a comparative advantage in, while the rich nation can import it at a lower cost compared to producing it domestically. Therefore, the best choice is C.

A Rich Nation Will Trade with a Poor Nation Because