When opportunity costs differ between countries, ... a. Comparative advantages may not exist. b. Only the larger countries will benefit from trade. c. Each country should produce only those goods for which it has an absolute advantage. d. Specialisation and trade can lead to increases in the production of all commodities. e. Only the smaller countries will benefit from trade.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter28: International Trade
Section: Chapter Questions
Problem 3P
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Q90

When opportunity costs differ between countries, ...
a.
Comparative advantages may not exist.
b.
Only the larger countries will benefit from trade.
c.
Each country should produce only those goods for which it has an absolute advantage.
d.
Specialisation and trade can lead to increases in the production of all commodities.
e.
Only the smaller countries will benefit from trade.
Clear my choice
 
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