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) import those goods in which the country has an absolute advantage compared to its trading partner.
D) export those goods in which the country has an absolute advantage compared to its trading partner.

Question

Quizplus · Accepted Answer

Comparative advantage suggests that a country will export goods in which it has a lower opportunity cost compared to its trading partners, not necessarily those in which it has an absolute advantage. This principle allows for more efficient global production and trade patterns.

Comparative Advantage Implies That a Country Will