Japan exports cars to the other countries of the world. In an open economy Japan is most likely to have a domestic price that is ________ the world price of cars.

Question

Quizplus · Accepted Answer

If the price of a good or service in a closed economy is lower than the world price, and that economy opens itself up to trade, the economy will tend to become a net exporter of that good or service.

Japan Exports Cars to the Other Countries of the World