What does the theory of "comparative advantage" hold?
A) Each nation has an economic advantage relative to other nations in terms of purchasing power parity rates.
B) Each nation has an economic advantage relative to other nations for the production of some goods.
C) Economic advantage comes from producing the most appropriate commodity.
D) Historically, Northern countries have held numerous advantages which make it difficult for Southern countries to benefit from the opening up of the world market.
E) Some nations will be unable to benefit from an open, globalized market.
Correct Answer:
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A)
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