If a country has the comparative advantage in producing wine, the domestic equilibrium price of wine without trade in the country would be _____ the world price, and the country would _____ wine.

Question

Quizplus · Accepted Answer

If a country has the comparative advantage in producing wine, it can produce wine at a lower opportunity cost compared to other countries. Therefore, its domestic equilibrium price of wine without trade would be lower than the world price. As a result, the country would export wine, which means selling its wine to other countries.

If a Country Has the Comparative Advantage in Producing Wine