If Brazil Has a Comparative Advantage in Producing Sugar,and Trade

question 124

Multiple Choice

If Brazil has a comparative advantage in producing sugar,and trade in sugar is allowed,what can be said about Brazil

• A)Brazil will become an importer of sugar.
• B)Brazil will become an exporter of sugar.
• C)Brazil could only become an importer of sugar if it has absolute advantage in producing sugar.
• D)Brazil could only become an exporter of sugar if it has absolute advantage in producing sugar.

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