When a nation first begins to trade with other countries and the nation becomes an exporter of corn,
A)this is an indication that the world price of corn exceeds the nation's domestic price of corn in the absence of trade.
B)this is an indication that the nation has a comparative advantage in producing corn.
C)the nation's consumers of corn become worse off and the nation's producers of corn become better off.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When a nation becomes an exporter, it indicates that the world price is higher than the domestic price, suggesting a comparative advantage, and typically benefits producers while disadvantaging consumers.

When a Nation First Begins to Trade with Other Countries