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Assume,for France,that the Domestic Price of Tea Without International Trade

Question 103

Multiple Choice

Assume,for France,that the domestic price of tea without international trade is higher than the world price of tea.This suggests that


A) other countries have a comparative advantage over France in producing tea.
B) France has an absolute advantage over other countries in producing tea.
C) France will export tea if international trade is allowed.
D) French tea buyers will become worse off if international trade is allowed.

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