Comparative advantage implies that a country will
A) import those goods in which the country has a comparative advantage.
B) export those goods in which the country has a comparative advantage.
C) export goods produced by domestic industries with low wages relative to its trading partners.
D) find it difficult to conclude free trade agreements with other nations.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that a country will export goods for which it has a lower opportunity cost of production relative to other countries. This principle is foundational in international trade theory, indicating that countries benefit from specializing in the production of goods where they hold a comparative advantage and trading for others.

Comparative Advantage Implies That a Country Will