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

Question

Quizplus · Accepted Answer

When a nation becomes an importer, it indicates that the world price is lower than the domestic price, making domestic producers worse off and consumers better off due to lower prices.

When a Nation First Begins to Trade with Other Countries