Rapidly growing developing countries tend to be borrowers on the international capital markets. From this information we may surmise that they have a comparative advantage in
A) capital goods.
B) future income.
C) consumer goods.
D) present income.
E) disposable income.

Question

Quizplus · Accepted Answer

Rapidly growing developing countries have a comparative advantage in future income because their economies are expanding, and they are expected to generate higher levels of income in the future. As a result, they borrow from international capital markets to finance investments and stimulate economic growth. This helps them to realize their potential by supplying them with the financial resources they need to continue their development trajectory.

Rapidly Growing Developing Countries Tend to Be Borrowers on the International