When a country removes trade barriers and imports appliances and exports engineering services,

Question

Quizplus · Accepted Answer

By removing trade barriers, the country is opening its market to foreign appliances, which may lead to a decline in the domestic production of appliances. However, the country can still benefit from its comparative advantage in providing engineering services to other countries, which can boost its export earnings. This does not necessarily mean that the country is transforming engineering services into appliances, but rather shifting its focus to areas where it has a competitive edge.

When a Country Removes Trade Barriers and Imports Appliances and Exports