Which of the following factors could deter a nation from producing products for which it has a comparative advantage?
A) Exchange rate
B) GDP of the nation
C) Barriers to international trade
D) Opportunity cost of producing goods

Question

​Which of the following factors could deter a nation from producing products for which it has a comparative advantage?
A) ​Exchange rate
B) ​GDP of the nation
C) Barriers to international trade
D) ​Opportunity cost of producing goods

Quizplus · Accepted Answer

Barriers to international trade can discourage a nation from producing products for which it has a comparative advantage. Such barriers can come in the form of tariffs, quotas or embargoes which make it more expensive to export goods or restrict trade. This can reduce or eliminate any potential comparative advantage a nation has, making it less profitable or viable to produce certain products.

​Which of the Following Factors Could Deter a Nation from Producing

Which of the Following Factors Could Deter a Nation from Producing