Under what conditions can a nation's producers compete effectively with imports?

Question

Quizplus · Accepted Answer

In order for a nation's producers to compete effectively with imports, they need to have lower labor costs per unit of output compared to producers in the exporting nations. This could be achieved through various means such as having access to cheaper raw materials, using more efficient production processes, or having favorable exchange rates. High wages or low labor productivity would make it difficult for the nation's producers to compete effectively with imports. Less specialization may not necessarily be an advantage for competing with imports.

Under What Conditions Can a Nation's Producers Compete Effectively with Imports