If New Zealand exports wool to China, and imports cameras from China, then it is likely that:
A) New Zealand has a comparative advantage in producing cameras and China has a comparative advantage in producing wool.
B) New Zealand has a comparative advantage in producing wool and China has a comparative advantage in producing cameras.
C) New Zealand and China would both be better off if they each produced wool and cameras.
D) New Zealand subsidises the production of wool.
Correct Answer:
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