Can a Nation Gain from Trade If It Has a Comparative

question 96

Multiple Choice

Can a nation gain from trade if it has a comparative disadvantage in the production of some commodity?

• A)It cannot gain from international trade in the commodity.
• B)It can gain from international trade in that commodity only if it has an absolute advantage in that commodity.
• C)It can still gain from international trade in that commodity by getting it at a lower opportunity cost than if it produced it domestically.
• D)It cannot gain from international trade unless it has an absolute advantage in every other commodity.

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