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.
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.
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.
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