What does it mean for a country if the world price of a product is higher than its domestic price
A)The country should import that product.
B)The country should no longer produce that product.
C)The country has a comparative advantage in that product.
D)The country could benefit by imposing a tariff on that product.

Question

Quizplus · Accepted Answer

If the world price of a product is higher than its domestic price, it means the country has a comparative advantage in producing that product. The country can export the product and earn more revenue compared to the domestic market. However, the country needs to consider factors such as transportation cost and demand in foreign markets.

What Does It Mean for a Country If the World