As a nation opens trade, the relative prices of products it
Exports will __________ and the relative prices of
Products it imports will ___________.
A)rise; fall
B)fall; rise
C)remain constant; fall
D)rise; remain constant

Question

Quizplus · Accepted Answer

When a nation opens trade, the relative prices of products it exports will rise due to increased demand from foreign markets, while the relative prices of products it imports will fall as they become more available and competitive in the domestic market.

As a Nation Opens Trade, the Relative Prices of Products