Which of the following is a potential threat for a country like China whose strength lies in its abundant labour?
A) Exploitation of comparative advantage.
B) Rising exchange rate.
C) Higher wages in other countries.
D) Trade creation.

Question

Quizplus · Accepted Answer

A rising exchange rate can make a country's exports more expensive and imports cheaper, potentially harming its labor-intensive industries, which rely on competitive pricing in international markets.

Which of the Following Is a Potential Threat for a Country