Multiple Choice
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:
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