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:

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The official governing bodies or authorities of a country in which foreign entities, such as companies or NGOs, operate, often interacting with these foreign entities through regulations and policies.

Scientific Community

A collective of scientists and researchers who share knowledge, methodologies, and practices in pursuit of scientific advancement.