When a Nation First Begins to Trade with Other Countries

question 84

Multiple Choice

When a nation first begins to trade with other countries and the nation becomes an exporter of soybeans,

• A)this is an indication that the world price of soybeans exceeds the nation's domestic price of soybeans in the absence of trade.
• B)this is an indication that the nation has a comparative advantage in producing soybeans.
• C)the nation's consumers of soybeans become worse off and the nation's producers of soybeans become better off.
• D)All of the above are correct.

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Definitions:

Negative News

Information or reports that convey unfavorable, adverse, or undesirable outcomes or situations.

Routine

A set of habitual or fixed procedures and practices, typically followed to accomplish tasks or maintain productivity.

Minor

Constituting a smaller or less important part; of lesser seriousness or significance.

Direct Method

A straightforward approach in financial statements or communication where costs or benefits are presented explicitly without adjustments.