A Country Has a Comparative Advantage in the Production of DVD

question 56

True/False

A country has a comparative advantage in the production of DVD players if it can produce DVD players at a lower opportunity cost than others.

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Definitions:

Exports

Items or services created in one country and traded to customers in another country.

Net Exports

The value of a country's total exports minus the value of its total imports, representing the net trade balance.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country’s borders.

Investment

The expenditure on capital goods including buildings, machinery, and equipment, intended to enhance future production or yield future returns.