Suppose rice can be produced in country X at a lower cost than in country Y,while tuna can be produced in country Y at a lower cost than in country X.International competition will:
A) destroy the rice market in both countries.
B) drive X to specialise in rice and Y to specialise in tuna.
C) drive Y to specialise in rice and X to specialise in tuna.
D) cause both X and Y to reject international specialisation.
E) result in lower total output of rice and tuna.
Correct Answer:
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