Exports arise because:
A)the importing country has a comparative advantage in consuming a good
B)the exporting country has a comparative advantage in producing a good
C)the exporting country has a comparative advantage in consuming a good
D)the importing country has a comparative advantage in producing a good

Question

Quizplus · Accepted Answer

Exports arise because the exporting country has a comparative advantage in producing a good. This means they can produce the good at a lower opportunity cost than other countries, making them more efficient in the production of the good. As a result, they can sell the good to other countries and generate revenue.

Exports Arise Because