Which of the following is not a source of comparative advantage?
A) relative abundance of labour and capital
B) technology
C) climate and natural resources
D) a strong foreign currency exchange rate

Question

Quizplus · Accepted Answer

A strong foreign currency exchange rate is not a source of comparative advantage. Rather, it is an outcome of having a comparative advantage in exports, which leads to higher demand for a country's currency and increases its exchange rate. The other options are all sources of comparative advantage, as they allow a country to produce goods and services more efficiently and at a lower cost than other countries.

Which of the Following Is Not a Source of Comparative