Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 3 - Part I - Interdependence and the Gains from Trade - Quick Check Multiple Choice - Page 59: 4

Answer

d. those goods in which other nations have a comparative advantage

Work Step by Step

If a different nation has a comparative advantage, they can produce a certain good at a lower opportunity cost than the other nation. This means that they should specialize in this production and export their excess to the other nation. This means that the nations without the comparative advantage will import these goods in exchange for the goods in which they have a comparative advantage.
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