Assume, for China, that the domestic price of oranges without international trade is lower than the world price of oranges. This suggests that, in the production of oranges,
A) China has a comparative advantage over other countries and China will import oranges.
B) China has a comparative advantage over other countries and China will export oranges.
C) other countries have a comparative advantage over China and China will import oranges.
D) other countries have a comparative advantage over China and China will export oranges.
Correct Answer:
Verified
Q120: Figure 9-9
The following diagram shows the domestic
Q121: Figure 9-1 Q122: What are the arguments in favor of Q123: Figure 9-1 Q124: Figure 9-1 Q126: When the nation of Worldova allows trade Q127: In analyzing the gains and losses from Q128: When the nation of Duxembourg allows trade Q129: Suppose New Zealand has a comparative advantage Q130: Figure 9-1 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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