Q25 If country A has wages that are substantially less than those in country B, ... a. The pattern of comparative advantage will depend also on the relative productivities of labour in the two countries. b. Country A will have an absolute advantage over country B. c. Country B will import from A but will not be able to export to country A. d. Country B will benefit by placing tariffs on imports from country A. e. Country A will not have to subsidise its export industrie
Q25 If country A has wages that are substantially less than those in country B, ... a. The pattern of comparative advantage will depend also on the relative productivities of labour in the two countries. b. Country A will have an absolute advantage over country B. c. Country B will import from A but will not be able to export to country A. d. Country B will benefit by placing tariffs on imports from country A. e. Country A will not have to subsidise its export industrie
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter21: International Trade And Comparative Advantage
Section: Chapter Questions
Problem 7DQ
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Question
Q25
If country A has wages that are substantially less than those in country B, ...
a.
The pattern of comparative advantage will depend also on the relative productivities of labour in the two countries.
b.
Country A will have an absolute advantage over country B.
c.
Country B will import from A but will not be able to export to country A.
d.
Country B will benefit by placing tariffs on imports from country A.
e.
Country A will not have to subsidise its export industries.
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